Question: In 2015 the Rubin Center for the Arts received a

In 2015, the Rubin Center for the Arts received a $2 million endowment, the income of which was to be used to support local artists. The center invested the proceeds in securities. In 2015, owing to interest, dividends and changes in market prices, the value of the endowment increased by $120,000. Of this amount, the center spent
$80,000 on programs that were consistent with the endowment's restrictions. In 2016, owing to a market downturn, the portfolio incurred net losses of $60,000. In 2017, it had net earnings of $70,000. In neither 2016 nor 2017 did the center use any endowment resources to support its programs.
In the absence of donor specifications and applicable statutes, what would be the balances, at the end of 2015, 2016, and 2017, in the center's (a) permanently restricted endowment fund and (b) related temporarily restricted fund? Indicate also any impact on unrestricted funds.

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  • CreatedAugust 13, 2014
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