On July 1, 2016, the City of Belvedere accepted a gift of cash in the amount of $3,210,000 from a number of individuals and foundations and signed an agreement to establish a private-purpose trust. The $3,210,000 and any additional gifts are to be invested and retained as principal. Income from the trust is to be distributed to community nonprofit groups as directed by a Board consisting of city officials and other community leaders. The agreement provides that any increases in the market value of the principal investments are to be held in trust; if the investments fall below the gift amounts, then earnings are to be withheld until the principal amount is re- established. 1. On July 1, the original gift of cash was received. 2. On August 1, $2,197,000 in XYZ Company bonds were purchased at par plus accrued interest ($18,308). The bonds pay an annual rate of 5 percent interest semiannually on April 1 and October 1. 3. On August 2, $902,000 in ABC Company common stock was purchased. ABC normally declares and pays dividends semiannually, on January 31 and July 31. 4. On October 1, the first semiannual interest payment ($54,925) was received from XYZ Company. Note that part of this is for accrued interest due at the time of purchase; the remaining part is an addition that may be used for distribution. 5. On January 31, a cash dividend was received from ABC Company in the amount of $25,000. 6. On March 1, the ABC stock was sold for $921,000. On the same day, DEF Company stock was purchased for $966,000. 7. On April 1, the second semiannual interest payment was received from