The Riverview Conservation Authority is a not$-$for$-$profit organization funded by grants from the provincial and municipal governments as well as by corporate and individual donations. The nonprofit was founded at the beginning of Year $1$ by Bob Kinew, to promote conservation efforts and reforestation in the community and around the country. Riverview Conservation Authority hires tree planters to plant trees all over the country. Financial statements are prepared using fund accounting and it uses one general fund to account for al its activities. Revenue from grants and contributions is recognized using the deferral method. The following summarizes some of the transactions made for the year ended December $31,$ Year $2$: $1.$ The provincial government contributed $$1,000,000$ to purchase equipment. $2.$ The municipal government pledged $$200,000$ for the year to cover operating costs. Ninety percent of this grant is provided at the start of the year and the balance is paid when the annual report is filed at year$-$end. $3.$ Bob Kinew, the organization's founder, contributed $$200,000$ on the conditions that the principal amount be invested in marketable securities and that only the income earned from the investment is spent on operations. $4.$ During the month of December, Riverview was involved in a fund$-$raising initiative to raise funds for operations. $$400,000$ in cash was collected, and pledges totalling $$50,000$ were made by members of the community. Riverview hopes to follow up with phone calls to see if they can convert the pledges to cash in the coming year. $5.$ The equipment that Riverview purchased cost $$800,000.$ An additional $$100,000$ was spent to transport the equipment to the location of use. The amortization of these assets amounted to $$90,000$ for the year. This equipment was purchased at the start of Year $2$ and is expected to have a useful life of $10$ years.