The city is installing curbs and sidewalks in a subdivision as part of a special assessment capital improvement project. The capital improvements are being financed by an $800,000 eight year, 10%, special assessment note payable. The note and interest are to be repaid from special assessments levied against the property owners of the subdivision. The total amount of special assessments is $840,000 and will be collected evenly over eight years. The government should report Capital Projects Fund revenues for the current year equal to

Question

Quizplus · Accepted Answer

The Capital Projects Fund should not recognize revenue from special assessments until they are measurable and available. Since the assessments are collected over eight years, the current year's revenue would be $0.

The City Is Installing Curbs and Sidewalks in a Subdivision