The Following Events Pertain to Valley Hospital, a Privately Funded

The following events pertain to Valley Hospital, a privately funded medical facility, for the current year. Valley's accounting year ends December 31.
1) The hospital billed patients for $12,000,000. Cafeteria sales were $4,800,000.
2) Supplies with a market value of $200,000 were donated. Equipment with a market value of $500,000 and a book value to the donor of $450,000 was donated. There are no donor restrictions on either donation.
3) Operating expenses were as follows:
$$\begin{array} { | l | r | } \hline \text { Patient services } & \$ 10,000,000 \\\hline \text { Research } & 1,500,000 \\\hline \text { Administrative services } & 3,800,000 \\\hline \text { General } & 2,500,000 \\\hline \text { Total } & \$ 17,800,000 \\\hline\end{array}$$ 4) A gift of $400,000 was received, to be used in a specific research program. $300,000 was expended for the research (included in 3. above), and the remainder was invested in short-term equity securities and earned income of $3,000. The donor specified that investment income is restricted for the designated research purposes, but unrealized gains and losses are unrestricted. The securities have a market value of $295,000 at year-end.
5) An endowment of $500,000 is received. The principal is to be maintained, and investment income, gains and losses are unrestricted. The $500,000 is invested, and income of $14,000 is received. There are no unrealized gains or losses on the investments.
6) $600,000 in previous years' donations that were donor restricted to specific research programs was spent this year. This amount is included in 3. above.
7) Included in general expenses are increases in the hospital's pension liability, due to changes in assumptions, totaling $800,000.
Required
Prepare Valley Hospital's statement of activities for the year. Assume the beginning net asset balances for the hospital are: $3,000,000 for net assets without donor restrictions and $2,000,000 for net assets with donor restrictions. The hospital displays an intermediate performance measure, labeled "performance earnings," following ASC Topic 954 requirements.