On January $1,2024,$ a rich citizen of the Town of Ristoni donates a painting valued at $$466,000$ to be displayed to the public in a government building. Although this painting meets the three criteria to qualify as an artwork, town officials choose to record it as an asset. The gift has no eligibility requirements. These officials judge the painting to be inexhaustible so that depreciation will not be reported.

Required:

For the year ended December $31,2024,$ what does the town report on its government$-$wide financial statements in connection with this gift?

How does the answer to requirement $($a$)$ change if the government decides to depreciate this asset over a $10-$year period using straight$-$line depreciation?

How does the answer to requirement $($a$)$ change if the government decides not to capitalize the asset?

Answer rating: 100% (QA)

a For the year ended December 31 2024 the Town of Ristoni would report the following on its governme... View the full answer