A city's Enterprise Fund received $3,000,000 cash in the form of a capital grant during the fiscal year ended June 30, 20X3. The Enterprise Fund incurred and paid construction costs from that grant in the amount of $1,200,000. What amount should be reported on the Enterprise Fund Statement of Net Position as net investment in capital assets?

Question

Quizplus · Accepted Answer

The net investment in capital assets would be the amount of construction costs incurred and paid, which is $1,200,000. The remaining grant amount not yet used for construction does not count towards the net investment in capital assets.

A City's Enterprise Fund Received $3,000,000 Cash in the Form