A city entered into a general government capital lease for equipment on July 1, 20X7. The capitalizable cost of the equipment was $400,000. A down payment of $40,000 was made. The next lease payment of $100,000 is due July 1, 20X8. The implicit rate of interest on the lease agreement is 10%. The amount of expenditures that the city should report in its General Fund statement of revenues, expenditures, and changes in fund balance for the year ended December 31, 20X7 is

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The Answer of A city entered into a general government capital lease for equipment on July 1, 20X7. The capitalizable cost of the equipment was $400,000. A down payment of $40,000 was made. The next lease payment of $100,000 is due July 1, 20X8. The implicit rate of interest on the lease agreement is 10%. The amount of expenditures that the city should report in its General Fund statement of revenues, expenditures, and changes in fund balance for the year ended December 31, 20X7 is

A City Entered into a General Government Capital Lease for Equipment