Choice "C" is correct. The gift will be accounted for in a permanent fund. Permanent funds are used to report resources that are legally restricted to the extent income, and not principal, may be used for purposes supporting the reporting government's programs for the benefit of the public. The library is to be supported by a gift endowment and the library is intended to support the needs of the general community, not a specifically identified individual.Choice "b" is incorrect. Investment trust funds are used to account for external investment pools. An endowment contributed in support of a library to benefit the public is not an external investment pool.Choice "a" is incorrect. Private purpose trust funds are fiduciary relationships that do not meet the definition of a pension, agency or investment trust fund and are intended for the benefit of specific individuals, private organizations or other governments. The library to be benefitted by the endowment is for the general public, not specific private individuals.Choice "d" is incorrect. Special revenue funds account for revenues from specific taxes or other earmarked sources that (by law) are restricted or committed to finance particular activities of a government. Roy City is accounting for income from a gift that is not appropriate for accounting within a special revenue fund.