The general capital assets balances for the City of Sugarland as end of the December 31, 20X1 fiscal year are:
$\begin{array}{llr}
\text { Nondepreciable Capital Assets: } &\
\text { Land} &\$1,350\
\text { Construction in Progress } &2,200\
\
\text {Depreciable Capital Assets: } &\
\text { Buildings } &\$16,500\
\text {
Accumulated Depreciation } &7,500\
\text { Infrastructure } &186,000\
\text {Accumulated Depreciation } &103,000\
\text { Vehicles} &8,500\
\text {
Accumulated Depreciation } &2,600\
\text { Equipment } &3,450\
\text { Accumulated Depreciation } &2,800\
\end{array}$

The following events related to the city's capital assets occurred during fiscal year 20X2:
1. A pickup truck purchased for $30 was sold. It had accumulated depreciation of $21.
2. Land purchased many years ago for $140 was sold.
3. A new police car was purchased for $50 (5 year useful life) as was a new fire truck for $250 (10 year useful life). Both were purchased at the beginning of the fiscal year. Depreciation on all new buildings, vehicles, and equipment is for the nearest full year, using the straight-line method with zero salvage value.
4. A new civic center was started in the previous fiscal year. Costs were $2,200 in the previous year. It cost $2,800 to finish it in the current fiscal year. The center was ready for use just in time for a Christmas pageant on December 20, 20X2.
5. New roads costing $550 were built during the year. Depreciation on new roads starts the following fiscal year.
6. Depreciation expenses for FY 20X2 on capital assets on hand at the beginning of the year are: Building, $500; Infrastructure, $2,500; Vehicles, $415; and Equipment, $200.
7. Depreciation on all capital assets except infrastructure is allocated to government functions as follows: general government, 30%; public safety, 50%; streets and roads, 20%. Infrastructure depreciation is charged to the function responsible for maintaining it.

$\underline{\text{Requirement: }}$ Using the information presented above, complete the general capital asset note disclosure for FY 20X2.

Question

The general capital assets balances for the City of Sugarland as end of the December 31, 20X1 fiscal year are:
$\begin{array}{llr}
  \text { Nondepreciable Capital Assets: } &\
 \text {  Land} &\$1,350\
 \text { Construction in Progress } &2,200\
\
 \text {Depreciable Capital Assets:  } &\
 \text { Buildings } &\$16,500\
 \text { 
Accumulated Depreciation } &7,500\
 \text { Infrastructure } &186,000\
 \text {Accumulated Depreciation  } &103,000\
 \text {  Vehicles} &8,500\
 \text { 
Accumulated Depreciation } &2,600\
 \text { Equipment } &3,450\
 \text { Accumulated Depreciation } &2,800\
\end{array}$

The following events related to the city's capital assets occurred during fiscal year 20X2:
1. A pickup truck purchased for $30 was sold. It had accumulated depreciation of $21.
2. Land purchased many years ago for $140 was sold.
3. A new police car was purchased for $50 (5 year useful life) as was a new fire truck for $250 (10 year useful life). Both were purchased at the beginning of the fiscal year. Depreciation on all new buildings, vehicles, and equipment is for the nearest full year, using the straight-line method with zero salvage value.
4. A new civic center was started in the previous fiscal year. Costs were $2,200 in the previous year. It cost $2,800 to finish it in the current fiscal year. The center was ready for use just in time for a Christmas pageant on December 20, 20X2.
5. New roads costing $550 were built during the year. Depreciation on new roads starts the following fiscal year.
6. Depreciation expenses for FY 20X2 on capital assets on hand at the beginning of the year are: Building, $500; Infrastructure, $2,500; Vehicles, $415; and Equipment, $200.
7. Depreciation on all capital assets except infrastructure is allocated to government functions as follows: general government, 30%; public safety, 50%; streets and roads, 20%. Infrastructure depreciation is charged to the function responsible for maintaining it.

$\underline{\text{Requirement:  }}$  Using the information presented above, complete the general capital asset note disclosure for FY 20X2.

Quizplus · Accepted Answer

The Answer is General Capital Asset Note Disclosure for FY 20X2:

The general capital assets balances for the City of Sugarland as of the end of the December 31, 20X1 fiscal year are as follows:

Nondepreciable Capital Assets:
- Land: $1,350
- Construction in Progress: $2,200

Depreciable Capital Assets:
- Buildings: $16,500
Accumulated Depreciation: $7,500
- Infrastructure: $186,000
Accumulated Depreciation: $103,000
- Vehicles: $8,500
Accumulated Depreciation: $2,600
- Equipment: $3,450
Accumulated Depreciation: $2,800

Events Related to Capital Assets during FY 20X2:
1. A pickup truck purchased for $30 was sold. It had accumulated depreciation of $21.
2. Land purchased many years ago for $140 was sold.
3. A new police car was purchased for $50 (5-year useful life) and a new fire truck for $250 (10-year useful life) at the beginning of the fiscal year. Both were purchased at the beginning of the fiscal year. Depreciation on all new buildings, vehicles, and equipment is for the nearest full year, using the straight-line method with zero salvage value.
4. A new civic center was started in the previous fiscal year, with costs of $2,200. It cost $2,800 to finish it in the current fiscal year. The center was ready for use just in time for a Christmas pageant on December 20, 20X2.
5. New roads costing $550 were built during the year. Depreciation on new roads starts the following fiscal year.
6. Depreciation expenses for FY 20X2 on capital assets on hand at the beginning of the year are: Building, $500; Infrastructure, $2,500; Vehicles, $415; and Equipment, $200.
7. Depreciation on all capital assets except infrastructure is allocated to government functions as follows: general government, 30%; public safety, 50%; streets and roads, 20%. Infrastructure depreciation is charged to the function responsible for maintaining it.

In accordance with the above information, the general capital asset note disclosure for FY 20X2 is as follows:

- The city sold a pickup truck with a net book value of $8.8 ($30 - $21.2) and land with a net book value of $140.
- The new police car and fire truck were added to the capital assets at a cost of $50 and $250, respectively, at the beginning of the fiscal year.
- The new civic center's total cost of $5,000 ($2,200 + $2,800) was completed and ready for use by December 20, 20X2.
- New roads with a cost of $550 were added to the capital assets during the year.
- Depreciation expenses for FY 20X2 on capital assets on hand at the beginning of the year are as follows: Building, $500; Infrastructure, $2,500; Vehicles, $415; and Equipment, $200.

The city also allocated depreciation on all capital assets except infrastructure to government functions as follows: general government, 30%; public safety, 50%; streets and roads, 20%.

This information provides a comprehensive overview of the city's capital assets and their related transactions and events for FY 20X2.

The General Capital Assets Balances for the City of Sugarland