On January $1,2024,$ a rich citizen of the Town of Ristoni donates a painting valued at $\backslash (\backslash$$ $466,000\backslash )$ 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:

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

b$.$ 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?

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

Complete this question by entering your answers in the tabs below.

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

Accumulated depreciation$-$museum piece

Depreciation expense

Expense$-$artwork

Museum piece$-$artwork

Net book value

Revenue$-$donation Complete this question by entering your answers in the tabs below.

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

Complete this question by entering your answers in the tabs below.

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

Accumulated depreciation$-$museum piece

Depreciation expense

puired B

Expense$-$artwork

Museum piece$-$artwork

Net book value

Revenue$-$donation