Smith donated cash of $1,000,000 to Elizabeth City with the stipulation that the contribution be invested and that the investment’s earnings be spent for salaries

for the city’s symphony orchestra. The contribution was received on June 30, 20X4, and was invested in bonds on July 1, 20X4. The bonds were acquired at

face value and pay interest at 6 percent on January 1 and July 1. At June 30, 20X5, the fair value of the bonds was $995,000. During the year ended June 30,

20X5, $20,000 was provided to the symphony orchestra to help pay salaries. On the statement of fiduciary net position at June 30, 20X5, what would be the

amount reported for net position held in trust for the symphony orchestra?

a. $1,060,000

b. $1,055,000

c. $1,025,000

d. $1,035,000