50.1K

Verified Solution

Link Copied!

Use the following information to answer Questions :

• 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.
• When appropriate, the fund uses straight-line depreciation.

1. The equipment is used for a parking garage and is reported in an enterprise fund. What is reported in the enterprise funds operating statement, related to this equipment, in 2015?

1. The equipment is not reported in the operating statement
2. Expense of $16,000,000
3. Expense of $2,000,000
4. Expenditure of $16,000,000

2. The equipment is used for general operations and is reported in the general fund. What is reported in the general funds operating statement, related to this equipment, in 2015?

1. The equipment is not reported in the operating statement
2. Expense of $16,000,000
3. Expense of $2,000,000
4. Expenditure of $16,000,000

3. The equipment is used for a parking garage and is reported in an enterprise fund. What is reported in the enterprise funds operating statement, related to this equipment, in 2021?

1. Other financing source, $9,000,000
2. Gain on sale, $5,000,000
3. Revenue, $9,000,000
4. Loss on sale, $7,000,000

4. The equipment is used for general operations and is reported in the general fund. What is reported in the general funds operating statement, related to this equipment, in 2021?

1. Other financing source, $9,000,000
2. Gain on sale, $5,000,000
3. Revenue, $9,000,000
4. Loss on sale, $7,000,000

Answer & Explanation Solved by verified expert

See Answer