Question

In 2017, Sunrise City signed a contract in the amount of $8,000,000 for the construction of a new city hall. Expenditures were $4,000,000 in 2017 and $2,050,000 in 2018, which included a change to the original construction design in the amount of $50,000. What amount should be added to capital assets in the governmental activities accounts in 2018?

Answer 1

The correct answer is $2,050,000

Step-by-step explanation:

In 2017, Sunrise City signed a contract in the amount of $8,000,000 for the construction of a new city hall. Expenditures were $4,000,000 in 2017 and $2,050,000 in 2018

$2,050,000 should be added to capital assets in the governmental activities accounts in 2018