The BSK Health-Care foundation donated $900,000 as an endowment to be held in perpetuity to a senior citizens health and welfare organization during the year. The foundation stipulated that the income and investment appreciation be used to maintain its preventive care center for the elderly. The following year, the endowment principal had an investment appreciation of $60,000 and investment income of $80,000. The organization spent $70,000 to maintain its preventive care center during the year. What is the amount of change in net assets with donor restrictions that the organization should report for the second year?

a. $70,000
b. $80,000
C. $140,000
d. $970,000