(b) To illustrate the operation of the allocation of the interest earned credit, as stated above, assume that the unexpended balance for the respective programs, at the end of a quarter, are as follows:

If the development fund investments were $150,000, the interest earned during the quarter on $100,000 would be credited to offsite clearance, on $35,000 to rehabilitation, on $10,000 to relocation of buildings, and the interest on the residual amount of $5,000 would remain as a credit to project development cost (account 1420.2) or project income (account 3610). If the development fund investments were $125,000, the interest earned during the quarter on $100,000 would be credited to offsite clearance and that on $25,000 to rehabilitation, with no credit to relocation of buildings or project development cost (account 1420.2) or project income (account 3610). If the development fund investments were $15,000, the entire credit for the interest earned during the quarter would be to offsite clearance.