A college has adopted a "fixed rate of return" approach to the distribution of investment income. Each year it transfers 6 percent of its endowment value t expendable funds, irrespective of actual earnings. Suppose that in year one the fund actually earns 8 percent; in year two it earns 4 percent. Assuming the endowment earnings are not restricted to any particular purpose, how much should the college report as unrestricted earnings in each of the two years? How should the difference, if any, between what is transferred and what is reported be classified and accounted for?