Tree City reported a 1

, 500 n

e t

i n

c r

e a

s e

i n

f u

n d

b a

l a

n c

e f

o r

g o

v e

r n

m e

n t

a l

f u

n d

s

.

D u

r i

n g

t h

e y

e a

r

, T r

e e

p u

r c

h a

s e

d g

e n

e r

a l

c a

p i

t a

l a

s s

e t

s o

f 9,000 and recorded depreciation expense of $3,000. What amount should Tree report as the change in net assets for governmental activities?

a. $ (4,500)

b. $ 1,500

c. $ 7,500

d. $10,500