The parks and recreation department, which is accounted for within the General Fund, purchased a new athletic field mower at a cost of $25,000. The mower has an estimated useful life of 5 years. The General Fund would report depreciation expense at the end of Year 2 in the amount of

Question

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General Funds, being governmental funds, use the modified accrual accounting method, which does not recognize fixed assets or long-term debt in the fund financial statements. Therefore, depreciation is not recorded in the General Fund.

The Parks and Recreation Department, Which Is Accounted for Within