Which of the following statements is true concerning intragovernmental transfers of capital assets?
A) If a proprietary fund is donating a capital asset to a general government department, the proprietary fund will debit capital contribution for the net book value of the donated capital asset.
B) If a proprietary fund donates a capital asset to a general government department, it will be reported as a nonoperating expense in the proprietary fund but as a transfer between activities at the government-wide level.
C) If a general government department donates a capital asset to an Enterprise Fund, the General Fund will debit transfer out for the net book value of the donated asset.
D) If a general government department donates a capital asset to an Enterprise Fund, the General Fund will debit capital contribution for the original cost of the capital asset.
Correct Answer:
Verified
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