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:

Forms

The visible shape or configuration of something, also used philosophically to denote the essential characteristics of things or ideas.

Crimes Against Property

Offenses that involve the theft or destruction of someone's personal property, without the use or threat of force against the victims.

Frauds

Wrongful or criminal deception intended to result in financial or personal gain.

Felonies

Serious crimes typically punishable by imprisonment for more than one year or by death.