Assume for Questions 5 through 9 that the state of Exuberance issued $10,000,000 of 5%, 20-year refunding
Question:
Assume for Questions 5 through 9 that the state of Exuberance issued $10,000,000 of 5%, 20-year refunding bonds in 20X5 at par.
If the state placed $12,000,000 (the $10,000,000 from the advance refunding plus $2,000,000 from previously accumulated DSF resources) in the irrevocable trust in item 6 and the debt was deemed defeased in substance, the state should report
a. expenditures of $9,000,000 and other financing uses of $3,000,000.
b. expenditures of $3,000,000 and other financing uses of $9,000,000.
c. expenditures of $2,000,000 and other financing uses of $10,000,000.
d. expenditures of $12,000,000.
e. other financing uses of $12,000,000.
Step by Step Answer:
Governmental And Nonprofit Accounting Theory And Practice
ISBN: 9780132552721
9th Edition
Authors: Robert J Freeman, Craig D Shoulders, Gregory S Allison, Terry K Patton, Robert Smith,