During the year, a wealthy local merchant donated a building to the City of Rosewood. The original cost of the building was $300,000. Accumulated depreciation at the date of the gift amounted to $250,000. The appraised fair market value of the donation at the date of the gift was $600,000. At what amount should this contribution be recorded in the governmental activities accounts at the government-wide level?

Question

Quizplus · Accepted Answer

The contribution should be recorded at its fair market value of $600,000, which is the appraised value at the date of the gift. The accumulated depreciation is not relevant for the government-wide level accounting.

During the Year, a Wealthy Local Merchant Donated a Building