During the Year, a State-Owned University Received a $5 Million

question 28

Multiple Choice

During the year, a state-owned university received a $5 million gift. The donor specified that the principal of the gift must be held intact for 3 years, but the earnings from the gift can be used to support technology improvements in the college of business. At the end of the 3 years, the donor together with the university president and the college dean will decide how the $5 million gift can be used. The university will report the gift in what type of fund?

• A) Permanent fund.
• B) Private-purpose trust fund.
• C) Plant fund.
• D) Special revenue fund