In its government-wide Statement of Net Assets,a government reported assets of $155 million,including $50 million in capital assets (net of depreciation),and liabilities of $80 million,including long-term debt of $60 million,$40 million of which was issued to acquire capital assets.In addition,$30 million was restricted for debt service and other purposes.The government's unrestricted net assets would be reported as:

Question

Quizplus · Accepted Answer

Unrestricted net assets = Total assets - Total liabilities - Restricted net assets = $155M - $80M - $30M = $45M. However, since $40M of the debt was for capital assets, unrestricted net assets are $35M.

In Its Government-Wide Statement of Net Assets,a Government Reported Assets