The town of Brittainville has two Enterprise Funds—one for its water and wastewater operations and another for its cable television operation. The Water and Wastewater Enterprise Fund issued $11,000,000 of 6%, 15-year refunding bonds at par during the year. It also received a $175,000 federal grant to expand water and wastewater lines to economically depressed residential neighborhoods. The Cable Enterprise Fund made its annual payment of $1,000,000 to the General Fund to subsidize operations. It also was the recipient of a Federal Communications Commission unrestricted grant of $100,000.

How would the changes in net assets amount be affected in the Water and Wastewater Enterprise Fund by the transactions listed?

a. Changes in net assets would not be affected by the debt issuance; the grant would increase changes in net assets.

b. Changes in net assets would be decreased by any costs associated with issuing the refunding bonds; the grant would increase changes in net assets.

c. Both the refunding transaction and the grant would increase changes in net assets.

d. Both the refunding transaction and the grant would decrease changes in net assets.

e. Changes in net assets would not be affected by either transaction.