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1. Which of the following general government capital asset acquisitions would be the least likely to be accounted for in a Capital Projects Fund?

1. Acquisition of new computer servers through a capital lease arrangement
2. Construction of a new police headquarters building primarily financed by bond proceeds
3. Construction of a new community center paid for by a federal grant
4. Expansion of roads leading into a new city-owned football stadium paid for by a special property tax levied for that purpos

Questions 2 and 3 are based on the following information:

The city of Cleveland issued a 6-month, 2%, $1,000,000 bond anticipation note on November 30^th 2020 to provide initial financing for the construction of a new bridge. The issuance of long-term bonds whose proceeds Cleveland will use to pay for the entire bridge project had already received legally required voter approval when the BANs were issued, and the city is required to use the long-term bond proceeds to pay off the BAN principal and related interest when due.

2.Assuming Cleveland has incurred $400,000 in construction costs on the bridge by 12/31/20, Clevelands fiscal year end, the fund balance of the Capital Projects Fund used by Cleveland to account for the bridge project would total

1. $600,000
2. $400,000
3. ($1,000,000)
4. ($1,001,667)

3.True or False: Based on the information provided above, the $1,000,000 BAN principal would

be recorded in the citys GLTL.

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