Choice "D" is correct. Special revenue funds account for the proceeds of specific revenue sources (other than permanent funds or for major capital projects) that are legally restricted or committed to expenditures for specific purposes. The $8,000 is to be used for advances to private purpose trust funds and would be accounted for in private purpose trust funds. The $90,000 is for a major capital project, which would be accounted for in a capital projects fund.Choice "a" is incorrect. The $8,000 is for the private purpose trust funds, which would account for this money.
Choice "c" is incorrect. The $90,000 is accounted for in the capital projects fund.Choice "b" is incorrect. The $8,000 is accounted for in the private purpose trust funds. The $90,000 is accounted for in the capital projects fund.