A citys electric utility transfers $40 million to its general fund. Of this amount, $30 million is

Question:

A city’s electric utility transfers $40 million to its general fund. Of this amount, $30 million is a return of the general fund’s initial contribution of “start-up capital.” The balance is a payment in lieu of property taxes that a private utility operating in the city would have had to pay. Explain how each element of the transfer would be reported in the general fund’s operating statement.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: