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Liu City has a permanent fund that receives a donation of $2,000,000 as an endowment gift. The earnings on the gift are to be used

Liu City has a permanent fund that receives a donation of $2,000,000 as an endowment gift. The earnings on the gift are to be used for books for the city library. The City uses a special revenue fund for the library activities. What are the income statement effects in the permanent fund as a result of the endowment gift of $2,000,000 and the subsequent transfer of $150,000 to the special revenue fund?

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