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13 October, 23:42

During its calendar year 2019, a city issued $800,000 of bonds to acquire various items of capital equipment. By the end of 2020, the city had spent all the bond proceeds to purchase capital assets. Accumulated depreciation on the assets was $120,000, and $150,000 of the bonds had been paid off. How much should the city report in its government-wide statement of net position as net investment in capital assets?

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  1. 14 October, 02:06
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    The city's net investment in capital assets is $30,000

    Explanation:

    To calculate the city's net investment in capital assets we start with the total amount of capital assets:

    Capital assets $800,000

    minus accumulated depreciation ($120,000)

    minus outstanding bonds ($650,000)

    net capital assets $30,000
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