A government hospital received two gifts in 20X5. The first gift, for \(\$ 3,000,000\), was restricted to a specific operating purpose. Costs incurred during the year that qualified for use of the resources of the gift amounted to \(\$ 1,250,000\). The second gift was for \(\$ 8,000,000\) and was restricted for a capital project; \(\$ 2,000,000\) of construction costs were incurred on the project in 20X5. Explain or illustrate how these transactions should be reported in the hospital's Statement of Revenues, Expenses, and Changes in Net Assets for 20X5.