Chase Foundation Establishes a $1,000,000 Trust for a Government University

question 37

Multiple Choice

Chase Foundation establishes a $1,000,000 trust for a government university. The local bank is appointed as trustee of the fund. The income of the trust can be used to support any activity of the university. In the university's statement of net position, the $1,000,000 trust should be included in which component of net position?

• A) Not reported.
• B) Unrestricted net position.
• C) Restricted - nonexpendable net position.
• D) Permanently restricted net position.