Each charity receives a large investment in shares of a publicly traded company. The investment must be held forever.

Charity A can spend the resulting income as it sees fit.

Charity B must spend the resulting income to supplement salaries.

Both charities receive the same amount of income this year, and both immediately spend the entire income to supplement salaries.

Complete the matching below for the accounting by the charities for the donated shares.

Overall effect of the two charities' accounting

DR salary expense and

CR net

assets $-$ with

donor

restrictions

$($reclassified

when spent

to net assets

without

donor

restrictions$)$