Patat Columnis nor uie two lunas 2. The City of Dundee received a gift of $705,000 from a local resident on April 1, 2015 and signed an agreement that the funds would be invested permanently and that the income would be used to maintain the city cemetery. The following transactions took place during the year ended December 31, 2015 (a) The gift was recorded on April 1. (b) On April 1, 2015, XYz Company bonds were purchased in the amount of S700,000, at par. The bonds carry an annual interest rate of 5 percent, payable semiannually on October 1 and April 1. (c) On October 1, the semiannual interest was received. (d) From October 1 through December 1, payments were made totaling $16,600 to a lawn service company