at the beginning of 2017, a donor gives a private nfp organization a cash endowment of $2,000,000. the donor states that the organization must retain the endowment, and cash income on its investment must be used for specific program activities. the endowment is invested in securities. during 2017, investment income from the securities is $80,000. the securities have a fair value of $2,100,000 at year-end. the donor did not specify use for any gains (i.e., increases in fair value) on the securities.
a. a reduction in permanently restricted net assets.
b. a reduction in temporarily restricted net assets.
c. a reduction in unrestricted net assets.
d. not reported
