In March 2013, a resident of Randall City died, leaving her entire estate to the Randall City School District. The will specified that proceeds from the liquidation of her estate are to be invested, and investment income used to provide scholarships for needy high school students. Three students were to be selected each year by the school superintendent. At the date of the donor's death, the fair market value of the estate was estimated to be $1,030,000. When liquidated in December, the estate realized $1,050,000. Administrative costs of the estate in 2013 were $40,000. The net proceeds were then transferred to the school district and were invested in appropriate securities. In 2014, income from investments was $70,000. Administrative costs (all related to income) were $2,500. The first scholarships were awarded in 2014 for a total of $50,000. The investments are worth $1,040.000 at the end of 2014.
Required
Record the events described above in a permanent fund. Include closing entries.