On July 1, 2019, a City Used Tax Resources of $70,000

On July 1, 2019, a city used tax resources of $70,000 to acquire three police cars. The police cars were expected to have a useful life of three years, after which the salvage value would be $10,000. The city policy is to depreciate capital assets using the straight-line method. Identify the adjustment entries, if any, necessary to prepare government-wide financial statements from the city's calendar year 2019 fund-level statements.
a. No journal entries are needed
b.
$\begin{array}{llr} \text { Capital assets-equipment} &70,000\\ \text { Expenditures-capital outlay} &&70,000\\ \text { Depreciation expense-equipment } &11,667\\ \text {Accumulated depreciation-equipment } &&11,667\\\end{array}$


c.
$\begin{array}{llr} \text { Capital assets-equipment } &60,000\\ \text {Expenditures-capital outlay } &&60,000\\ \text { Depreciation expense-equipment} &10,000\\ \text { Accumulated depreciation-equipment } &&10,000\\\end{array}$

d.
$\begin{array}{llr} \text { Capital assets - equipment: } &70,000\\ \text {Expenditures-capital outlay } &&70,000\\ \text { Depreciation expense-equipment } &10,000\\ \text { Accumulated depreciation-equipment } &&10,000\\\end{array}$