3) A county acquires equipment for $16,000,000 at the beginning of 2015. The equipment has an 8-year life, no residual value. At the beginning of 2021 (6 years later), the equipment is sold for $9,000,000. Use straight-line depreciation, if appropriate. The equipment is used for a parking garage and is reported in an enterprise fund.

What is reported in the enterprise fund's operating statement, related to this equipment, in 2015?

A. The equipment is not reported in the operating

B. Expense of $2,000,000

C. Expenditure of $16,000,000

D. Expense of $16,000,000

4) A county acquires equipment for $16,000,000 at the beginning of 2015. The equipment has an 8-year life, no residual value. At the beginning of 2021 (6 years later), the equipment is sold for $9,000,000. Use straight-line depreciation, if appropriate. The equipment is used for a parking garage and is reported in an enterprise fund.

What is reported in the enterprise fund's operating statement, related to this equipment, in 2021?

A. Other financing source, $9,000,000

B. Revenue, $9,000,000

C. Loss on sale, $7,000,000

D. Gain on sale, $5,000,000

*Posted together because I need to see the difference between the questions and why the process is differnt.