A local town received a donation of $300,000. The donor stipulated that the money be invested with the investment earnings being used to provide funding for the town's recreation programs while the principal is to remain intact. The town should record the $300,000 as

Question

Quizplus · Accepted Answer

The $300,000 should be recorded as a revenue in a Permanent Fund because the principal is to remain intact and only the earnings are to be used for funding, which aligns with the purpose of a Permanent Fund.

A Local Town Received a Donation of $300,000