On January 10, 2012, Delta Hospital received a bequest in the form of equity securities. Delta was required to hold the securities in perpetuity, but it could spend the income. The securities had cost the donor $2.7 million, but their fair value was $3.4 million when Delta received them. The fair value of the securities fluctuated during the year, and Delta’s comptroller calculated that the average fair value during the year was $3.1 million. When Delta prepared its financial statements as of December 31, 2012, the fair value of the securities was $3.3 million. At what amount should Delta report the securities in its financial statements at December 31, 2012?

a. $2.7 million

b. $3.1 million

 c. $3.3 million

d. $3.4 million