Final Answer:
A capital projects fund is a fund used to account for the acquisition or construction of capital assets, such as buildings or equipment. These assets are expected to have a useful life of more than one year. When a government entity collects sales taxes that are specifically designated for the construction of a new courthouse, these sales taxes are typically deposited in a capital projects fund. so, the correct answer is b) Capital Projects Fund.
Step-by-step explanation:
The proper fund to account for the receipt of local sales taxes, which are legally restricted to pay for the construction of a new courthouse, is the Capital Projects Fund.
The Capital Projects Fund is specifically designed for the acquisition or construction of major capital facilities, such as courthouses. It is used to account for financial resources that are restricted, committed, or assigned for capital outlays.
On the other hand:
The General Fund is used for general operations and doesn't typically account for capital projects.
The Enterprise Fund is used for activities that operate like a business, providing goods or services, and is not suitable for capital projects.
The Special Revenue Fund is used for specific revenue sources other than capital projects, often for ongoing programs or services.
Therefore, the most appropriate fund in this scenario is the Capital Projects Fund (option b).