Choice "C" is correct. In the case of non-profit organizations such as churches, marketable equity securities are reported at market value as of the balance sheet date. Therefore, Midtown Church would report the investment at market value at the date of the balance sheet date.
Choice "a" is incorrect. Marketable securities are recorded at their fair value at the balance sheet date, not donor cost.
Choice "d" is incorrect. Marketable securities are recorded at fair value at date of receipt but marked to market at year end to reflect market value at the balance sheet date.
Choice "b" is incorrect. Securities valuation does not allow for alternative values or choices as of the balance sheet date.