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

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Definitions:

Obsessive Love

A condition where one person feels an overwhelming obsessive desire to possess and protect another person, often with a lack of regard for the feelings or desires of the other.

Infatuation

An intense but short-lived passion or admiration for someone or something.

Intimacy

A close and personal bond characterized by affection or love with another individual or group.

Sternberg's Triangular Theory

A theory of love developed by psychologist Robert Sternberg that suggests love is composed of three components: intimacy, passion, and commitment.