What should the fund with donor restrictions report in the 20X2 statement of activities?

a. Legacies and bequests of $200,000.

b. Investment income of $9,000.

c. Transfers to the fund without donor restrictions of $9,000.

d. All of the above.

On January 1, 20X2, State Center Health Agency, a voluntary health and welfare organization, received a bequest of a $200,000 certificate of deposit maturing on December 31, 20X6. The contributor’s only stipulations were that the certificate be held to maturity and the interest revenue received annually be used to purchase books for children in the preschool program run by the agency to read. Interest revenue each of the years was $9,000, and the full $9,000 was spent for books each year. When the certificate was redeemed, the board of trustees adopted a formal resolution designating $150,000 of the proceeds for future purchase of playground equipment for the preschool program.