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900000 plus 25000 in interest on short term notes

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$900,000, plus $25,000 in interest on short-term notes used to financeconstruction. What amount should be capitalized in the government-widestatements?1.$900,000.2.$925,000.3.$875,000.4.$0.
41.The following general capital assets were owned by the Town of Otterville:Town buildings$3,250,000Intangible assets1,000,000Streets, sidewalks, and water lines2,000,000What amount should be recorded as capital assets in the town’s governmental activitiesaccounts?
42.Equipment that had been acquired several years ago by a special revenue fundat a cost of $40,000 was sold for $15,000 cash. Accumulated depreciation of$30,000 existed at the time of the sale. The journal entry to be made in thegovernmental activities journal will include all of the following except:
43.Equipment that had been acquired several years ago by a special revenue fundat a cost of $40,000 was sold for $15,000 cash. Accumulated depreciation of$30,000 existed at the time of the sale. The journal entry to be made in thespecial revenue fund will include:
44.How should a capital lease for a general capital asset be recorded in thegovernmental activities accounts at the inception of the lease?
1.Debit to a capital asset account.2.Debit to a capital expense/expenditure account.3.Credit to Capital Lease Obligations Payable.4.Both A and C are correct.45.How should a capital lease for a general capital asset be recorded in the GeneralFund accounts at the inception of the lease?1.Debit to a capital asset account.2.Debit to a capital expenditure account.3.Credit to Capital Lease Obligations Payable.4.Both A and C are correct.46.The City of Castle Rock issued bonds at par for the construction of a new cityoffice building. Receipt of the bond proceeds would result in journal entries inwhich funds?1.Capital Projects Fund: Yes; Debt Service Fund: No2.Capital Projects Fund: No; Debt Service Fund: Yes3.Capital Projects Fund: Yes; Debt Service Fund: Yes4.Capital Projects Fund: No; Debt Service Fund: No
47.A government enters into a capital lease for the purchase of a new snow plow.The present value of the future lease payments is $845,500 and there is a downpayment at the inception of the lease of $25,000. The snow plow should berecorded in the General Fund at:1.$ 25,000.2.$870,500.3.$845,500.4.$0.
48.A government enters into a capital lease for the purchase of a new snow plow.The present value of the future lease payments is $845,500 and there is a downpayment at the inception of the lease of $25,000. The snow plow should berecorded in the government-wide statement of net position:

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Term
Summer
Professor
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Tags
Balance Sheet, Depreciation, Generally Accepted Accounting Principles, General Capital Assets

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