Question: Ten years ago the High Bridge Municipal Utility District an
Ten years ago, the High Bridge Municipal Utility District (an independent government) was granted an easement (a right to use the land of a private party) at no cost by a developer with the agreement that the easement be used to provide roads. At the time the developer granted the easement, the value of the surrounding land was $2,000 per acre. The easement occupied 10 acres of land. When, ﬁve years ago, the developer began construction of a subdivision, the land was appraised at $10,000 per acre. When the subdivision was completed, the value of surrounding land had increased to $60,000 per acre. At what value, if any, should the district report the easement on its government-wide statements?
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