At the beginning of its fiscal year, a local government was given 100 acres that the town council voted to use as a central park and business center. The land had an historical cost of $100 but was appraised at the time of donation at $500. The amount that should be recognized on the governmental fund financial statements for the year as revenue is
A) $-0-.
B) $100
C) $400
D) $500

Question

Quizplus · Accepted Answer

In governmental fund financial statements, capital assets, such as land, are not reported. Therefore, the donation of land is not recognized as revenue in the fund financial statements.

At the Beginning of Its Fiscal Year, a Local Government