3. Accounting for a permanent fund Stage: Mr. Pedro Donante donated the sum of $ 200,000 to the city of Loma Vista for the maintenance of a public park. He established by legal document that the principal be invested, but it could never be spent. Only the winnings can be spent. The city established a permanent fund. The proceeds will be transferred to a "Special Revenue Fund." to. Record the cash received by the donor b. The $ 200,000 invested in securities. c. During the year, $ 6,000 of earned income was received on the investment.