In its government-wide Statement of Net Assets, a government reported assets of $150 million, including $50 million in capital assets (net of depreciation) and liabilities of $80 million, including long-term debt of $60 million, $40 million of which was issued to acquire capital assets. In addition, $25 million was restricted for debt service and other purposes. The government's unrestricted net assets would be reported as:

Question

Quizplus · Accepted Answer

Unrestricted net assets are calculated as total net assets minus restricted net assets and net investment in capital assets. Total net assets are $70 million ($150 million assets - $80 million liabilities). Net investment in capital assets is $10 million ($50 million capital assets - $40 million debt for capital assets). Restricted net assets are $25 million. Therefore, unrestricted net assets are $35 million ($70 million - $10 million - $25 million).

In Its Government-Wide Statement of Net Assets, a Government Reported