on the following facts about an Enterprise Fund for a utilityoperation: Outstand
ID: 2450186 • Letter: O
Question
on the following facts about an Enterprise Fund for a utilityoperation:
Outstanding bonds issued for capitalimprovements........................ $10,500,000
Transfer to General Fund (occursannually)..................................... $500,000
Charges for services earned in the currentyear................................. $14,600,750
Unspent capital bond issueproceeds.................................................$4,000,000
Salaries and wages expense for the currentyear............................... $9,600,000
Interest earning on allinvestments....................................................$600,000
Fair market value of water lines donated by a localdeveloper.......... $1,000,000
Net book value of all other existing capitalassets............................. $7,310,500
Invested in capital assets, net of related debt, would be
A. $7,310,500
B.$ 8,310,500
C. ($2,189,500)
D. $4,310,500
E. $1,810,500
Explanation / Answer
Invested in capital assets , net ofrelated debt would be Fair Market Value of Water linesdonated 1,000,000.00 by Loacal Developer Net Book Value of all Capital Assets 7,310,500.00 Gross Assets 8,310,500.00 Less: Outstanding Bonds issued for Capital (10,500,000.00) improvements Invested in Capital Assets,net of related (2,189,500.00) debt Fair Market Value of Water linesdonated 1,000,000.00 by Loacal Developer Net Book Value of all Capital Assets 7,310,500.00 Gross Assets 8,310,500.00 Less: Outstanding Bonds issued for Capital (10,500,000.00) improvements Invested in Capital Assets,net of related (2,189,500.00) debt Fair Market Value of Water linesdonated 1,000,000.00 by Loacal Developer Net Book Value of all Capital Assets 7,310,500.00 Gross Assets 8,310,500.00 Less: Outstanding Bonds issued for Capital (10,500,000.00) improvements Invested in Capital Assets,net of related (2,189,500.00) debtRelated Questions
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