The City of Warwick Received $4,000,000 from One of Its

question 73

Multiple Choice

The City of Warwick received $4,000,000 from one of its most prominent citizens during the year ended June 30,20X9.The donor stipulated that the $4,000,000 be invested permanently,and that interest and dividends earned on the investments be used to support the homeless people of Warwick.During the year ended June 30,20X9,dividends received from stock investments amounted to $20,000,while interest received from bond investments amounted to $40,000.At June 30,20X9,$10,000 of interest was earned,but it will not be received until July of 20X9.The fair value of the securities in which the $4,000,000 was invested had increased $8,000 by June 30,20X9.
-Refer to the above information.For the year ended June 30,20X9,what amount should the trust fund report as investment earnings on the statement of revenues,expenses,and changes in fund balance?

• A)$60,000
• B)$68,000
• C)$70,000
• D)$78,000

---

Definitions:

Integrated

Integrated refers to systems, processes, or organizations that are coordinated and combined in a unified manner, ensuring seamless operation and efficiency.

Competitive Advantage

A condition or circumstance that puts a company in a favorable or superior business position compared to its competitors.

Human Resources

The department within an organization that handles recruitment, management, and direction for the people who work in the organization.

Tangible Assets

Physical and material assets owned by a business, such as machinery, buildings, and land, that have a quantifiable market value.