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An Enterprise Fund Is Donating a Capital Asset with a Net

Question 14

Multiple Choice

An Enterprise Fund is donating a capital asset with a net book value of $25,000 to a general government department. The entry that should be recorded for the Enterprise Fund would be


A) A debit to nonoperating expense and a credit to capital assets.
B) A debit to transfer out and a credit to capital assets.
C) A debit to capital contribution and a credit to capital assets.
D) A debit to other financing use and a credit to capital assets.

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