Question: Problem 1 2 - 3 7 On January 1 , 2 0 2 4 , a wealthy citizen of the Town of Ristoni donates a

Problem 12-37
On January 1,2024, a wealthy citizen of the Town of Ristoni donates a painting valued at $300,000 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.
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?

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