On the first day of the year, the City of Wolfe bought $20,000 of equipment with a

Question:

On the first day of the year, the City of Wolfe bought $20,000 of equipment with a 5-year life and no for its school system. It was capitalized but no other entries were ever made. The machine was monitored using the modified approach.

a. Based on the information provided above, what was the correct overall change in the net position in the government-wide financial statements?
b. What was the correct amount of net expenses for education in the government-wide statements?

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...