Rhododendron City traded in a used pickup for a new pickup with a sticker price of $44,000. The old truck had a historical cost of $40,000, accumulated depreciation of $16,000, and a fair value of $27,000. The dealer took the old truck and $10,000 cash for the new truck.

1.  
2. For a government that elects not to capitalize its works of art and similar assets, the appropriate entry for reporting in the government-wide financial statements when receiving a contribution of a work of art is
3. No entry is required for contributed assets.
4. Debit Asset; Credit Revenues.
5. Debit Asset; Credit Equity.
6. Debit Program Expense, Credit Revenue

1. If a government elects the modified approach with regard to capitalization of infrastructure
2. Costs to preserve infrastructure assets are expensed as incurred with no additional disclosure required.
3. Costs to preserve infrastructure assets are expensed as incurred and disclosure of assessed condition is required.
4. Costs to preserve infrastructure assets are capitalized as incurred and depreciated over the estimated useful with no additional disclosure required.
5. Costs to preserve infrastructure assets are capitalized as incurred and are not depreciated, but disclosure of assessed condition is required.

1. A city would probable not have to recognize an impairment loss on its hospital building if
2. It were severely damaged in a fire.
3. It will likely be used to serve far fewer patients than expected when acquired
4. Its market value declines significantly
5. It will be transformed into a warehouse.

1. Spindle County issued $25 million of 5 percent demand bonds for construction of a county maintenance building. The county has no take-out agreement related to the debt. It estimates that 20 percent of the bonds would be demanded (called) by the buyers if interest rates increased by at least one percentage point. At year-end, rates on comparable debt were 7 percent. How should these demand bonds be reported in the governmental fund financial statements at year-end?
2. $25 million in the capital projects fund.
3. $5 million in the capital projects fund AND $20 million would be reported in the schedule of changes in long-term obligations.
4. $20 million in the capital projects fund AND $5 million would be reported in the schedule of changes in long-term obligations.

$25 million in the schedule of changes in long-term obligations

1. At what value should the new truck be reported in the government-wide financial statements?

 

1. What amount of gain/loss should be reported in the general fund financial statements?
2.  

Answer rating: 100% (QA)

At what value should the new truck be reported in the governmentwide financial statements The new tr... View the full answer