$13.$ Geneva Preschool provides free instruction for children from low$-$income families. Its January $1,2023,$ trial balance is as follows:

Debit Credit

Cash $$100,000$

Equipment & furnishings, net $1,500,000$

Building, net $3,500,000$

Accounts payable $$200,000$

Net assets without donor restrictions $3,400,000$

Net assets with donor restrictions $1,500,000$

$$5,100,000$ $$5,100,000$

Activities for $2023$:

a$.$ Unrestricted cash contributions were $$4,500,000.$

b$.$ On January $1,2023,$ a donor made a documented promise of $$500,000,$ to be paid at the end of $2025(3$ years later$).$ The donor restricts this contribution to support of music$-$related programs. Using a $5$ per cent discount rate, the present value of this promise is $$431,918.$

c$.$ Each year, Geneva collects donor$-$restricted contributions to purchase technology for educational programs. During $2023,$ $$200,000$ was received and $$500,000$ was spent. Geneva expenses technology purchases.

d$.$ Out$-$of$-$pocket operating expenses for the year were $$4,200,000.$ The year$-$end accounts payable balance, all related to operating expenses, was $$150,000.$

e$.$ A licensed CPA did all of Geneva$$s required financial statements and IRS forms for free. Fair value of these services is $$25,000.$ Parents of students donated their time to lead preschool classes in safety and nutrition. The fair value of their time is $$5,000.$

f$.$ Depreciation for the year on equipment and furnishings was $$250,000.$ Depreciation on the building was $$600,000.$

Geneva uses the indirect method to display the operating section of its statement of cash flows. On Geneva$$s $2023$ statement of cash flows, the reconciliation to cash from operations requires adding which item?

Select one:

b$.$ $$850,000$ depreciation expense

c$.$ $$25,000$ contribution of services

d$.$ $$431,918$ promises to contribute $14.$ Geneva uses the indirect method to display the operating section of its statement of cash flows. On Geneva$$s $2023$ statement of cash flows, what amount appears as the change in net assets, before adjustment to cash from operating activities?

$$50,000$ change in accounts payable

$$25,000$ contribution of services

$$850,000$ depreciation expense