For a government that elects to capitalize its works of art and similar assets, the appropriate entry for reporting in the government-wide financial statements when receiving a contribution of a work of art is

Question

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When a government receives a contribution of a work of art and elects to capitalize such assets, the appropriate accounting entry in the government-wide financial statements is to debit the asset account to recognize the addition of the asset and credit revenues to recognize the increase in resources. This reflects the receipt of the asset as a contribution or donation, increasing the government's net position.

For a Government That Elects to Capitalize Its Works of Art