Question: A city s electric utility transfers 40 million to its general

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.

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  • CreatedAugust 13, 2014
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