Question

The general fund of ABC city acquired two police cars at the beginning of January 20X3, at a total cost of $40,000. The cars are expected to last for four years and have a $10,000 residual value. Straight-line depreciation is used.

On the statement of revenues, expenditures, and changes in fund balances prepared for the governmental funds for the year ended December 31, 20X3, the police cars will be reported as:_____.

Answer 1

$0

Step-by-step explanation:

The computation of the reporting of the policy cars is shown below:

As we know that the policy cars are normally recorded and recognized as an expenditure in the funds of the government

Therefore the carrying value should be zero as the expenses amount is also not mentioned in the question so zero amount should be recognized and reported