The Sutton Hoo Foundation holds $32,000,000 fair value in debt and equity securities as a result of a permanently restricted contribution it received in a previous year. During 2018, the Foundation has a net gain of $2 million and $880,000 of interest and dividend income on those investments. If the donor specified that investment income from the contribution should be used support historical research for the years 300-1100 AD, how should the Foundation, whose focus is on European history from 100 to 1800 AD, classify this income?

Select one:

A. It should report both the gain and the investment income as support with donor restrictions.

B. It should report investment incomesupport without donor restrictions

C. It should report investment incomesupport with donor restrictions.

D. It should add the investment income to the investments in restricted contribution.