When a City Received a Private Donation of $1,000,000 Stipulating

question 20

Multiple Choice

When a city received a private donation of $1,000,000 stipulating that the principal donation would be preserved but allowing the interest income to be spent on building a city park with access for disabled children, which fund should the money be recorded in?

• A) the General Fund.
• B) an Expendable Trust Fund.
• C) a Permanent Fund.
• D) an Agency Fund.
• E) a Special Revenue Fund.

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Definitions:

Nontaxable Social Security Benefits

Portions of Social Security payments that are not subject to federal income tax under certain conditions.

AGI

Adjusted Gross Income, calculated as gross income minus adjustments, is a key figure in determining taxable income and eligibility for various tax deductions and credits.

Premium Tax Credit

A repayable tax credit intended to assist qualified individuals and families with low or moderate incomes in purchasing health insurance via the Health Insurance Marketplace.

Qualified Plan

A retirement plan that meets the requirements of the Internal Revenue Code, allowing for tax-deferred contributions and earnings until withdrawal.