On the first day of Year 4, the city receives a painting as a gift that qualifies as a work of art. It has a 30-year life, is worth $15,000, and is being displayed at one of the local parks. The accountant accidentally capitalized and depreciated it although officials had wanted to use the allowed alternative.
Respond to the following:
a. According to the information provided, the General Fund reported a $30,000 increase in its fund balance. If city officials had used proper alternatives in this reporting, what would have been the correct change in the fund balance for the General Fund for the year?
b. According to the information provided, the parks reported net expenses of $130,000. If city officials had used proper alternatives in this reporting, what was the correct net expense for parks for the year?
c. Assume the same information except that the art was given to the art museum but not recorded at all. What should have been the overall change in net assets for Year 4 on government-wide financial statements, assuming that officials still preferred the allowed alternative?

The government-wide financial statements indicated the following Year 4 totals:
Education had net expenses of $710,000.
Parks had net expenses of $130,000.
Art museum had net revenues of $80,000.
General revenues were $900,000; the overall increase in net assets was $140,000.
The fund-based financial statements issued for Year 4 indicated the following:
The General Fund had an increase of $30,000 in its fund balance.
The Capital Projects Fund had an increase of $40,000 in its fund balance.
The Enterprise Fund had an increase of $60,000 in its net assets.
Officials for Wolfe define “available” as current financial resources to be paid or collected within 60 days.