Assume for Questions 5 through 9 that the state of Exuberance issued $10,000,000 of 5%, 20-year refunding
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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 the $10,000,000 in an irrevocable trust that is to be used to service an outstanding $9,000,000 general obligation bond issue and those bonds are deemed defeased in substance, the state should report
a. expenditures of $9,000,000 and other financing uses of $1,000,000.
b. expenditures of $10,000,000.
c. expenditures of $1,000,000 and other financing uses of $9,000,000.
d. other financing uses of $10,000,000.
e. no expenditures or other financing uses.
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Related Book For
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,
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