Previously a local private-sector charity received a $1 million gift, the income from which was restricted to support activities for senior citizens. During the current year the endowment earned $40,000 of interest revenues, of which the charity designated $30,000 to support senior citizen activities.
-On its year-end statement of financial position, the charity would report restricted net assets of:

Question

Previously a local private-sector charity received a $1 million gift, the income from which was restricted to support activities for senior citizens.  During the current year the endowment earned $40,000 of interest revenues, of which the charity designated $30,000 to support senior citizen activities. 
-On its year-end statement of financial position, the charity would report restricted net assets of:

Quizplus · Accepted Answer

Restricted net assets are typically reported at the amount of the original restriction, which in this case is $1 million.

Previously a Local Private-Sector Charity Received a $1 Million Gift