Question

A citizen of York purchased a truck in 20X3 for $50,000. On June 10, 20X9, she donated the truck to York. The fair value of the truck on the date of donation was $30,000. How should York report the truck in its government-wide Statement of Net Assets

Answer 1

B. Machinery and equipment should be increased $30,000.

Step-by-step explanation:

Given that the current fair value of the truck donated to the city of York is valued at $30,000, the amount or entry to be written on the government wide statement of net asset will be machinery and equipment should be increased by $30,000. The initial amount of the truck that the citizen purchased it for in 20X3 is not a true represented of the current worth of the truck, hence the reason it is not being used and it's why the fair value estimation gives a better current worth of the asset.

Answer 2

Since the fair value was $30,000 hence the interest was $50,000-30,000=$20,000

option C is correct.