Land was donated to a government for use in a general government activity. The land should be reported in

Question

Quizplus · Accepted Answer

The land should be reported in the General Capital Assets accounts at the acquisition value of the land on the date it was donated to the government. This is because the land is considered a capital asset, and its acquisition value should be recorded in the government's accounting system as a part of its long-term assets. The cost incurred by the donor to acquire the land originally is not relevant to the government's accounting, as the government did not incur those costs themselves. Additionally, the General Fund is used to account for current operations and is not appropriate for long-term assets like land. Finally, the Capital Projects Fund is used to account for projects that are generally funded by bond proceeds or other long-term financing, and is not applicable in this scenario.

Land Was Donated to a Government for Use in a General