Below are a series of transactions which are independent of each other.
(a) A government makes a $10-million loan to a manufacturer, repayable in 5 years with an interest rate of 2%. Current borrowing rates to a company with equivalent credit quality are 6.5%.
(b) A government agency guarantees a $500,000 loan made by a bank to a farmer to buy a new combine.
(c) Personal papers belonging to a former prime minister are donated to the government archivist. An independent appraiser has placed a value of $250,000 on the papers.
(d) A city invests $10,000 in a production of a local theatre company. The investment must be returned if the directors of the theatre company do not stage the production locally.
(e) Contamination that exceeds provincial environmental regulations is found on the site of a former gas station. The city owns the land as it exercised its right to assume title to the property for unpaid real estate taxes.
Required
Indicate how each transaction should be accounted for under the CICA PSA Handbook.