Assume that the income for Westbury’s internal service fund was $10,000 for the year ended June 30, 20X7. What net position should be reported on the

internal service fund’s statement of net position at June 30, 20X7?

a. $713,000

b. $610,000

c. $710,000

d. $613,000

On July 2, 20X6, the Village of Westbury established an internal service fund to service the data processing needs of the other village departments. The internal
service fund received a transfer of $600,000 from the general fund and a $100,000 long-term advance from the water utility enterprise fund to acquire computer
equipment. During July 20X6, computer equipment costing $650,000 was acquired. The following events occurred during the year ended June 30, 20X7:

At June 30, 20X7, all but $7,000 of the billings had been collected, and all operating expenses and the interest expense except for $3,000 of operating expenses had
been paid.

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Charges for services to other departments for data processing services rendered $100,000 Operating expenses (exclusive of depreciation expense) 45,000 Depreciation expense 40,000 Interest expense on the advance 5,000