please explain which amount is permanently restricted and whu At the start of a

Question

please explain which amount is permanently restricted and whu

At the start of a year, an organization has an endowment fund to which donors had contributed $2 milion itn Apple Stock. The endowment donor specifies that 50% of the i the Employee Training Program nvestment gain wil be alocated to The total value of the portfolio was increased by $ 5 miltion at year 1 and decreased by $ 2milion at year 2 Determine the financial statement impact for Y 1 The Total Balance on " Permanently Restricted " As of 12/31/Y 1 is

Explanation / Answer

Contribution from Donors = $2 million

Increment in portfolio in Year 1 = $5 million

Amount alloacated to Employee training programme in Year 1 = 5*50% = $2.5 million

Total balance of permanently restricted in Year 1 = $2.5 million

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