In its government-wide Statement of Net Position,a government reported assets of $165 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 Position would be reported as:

Question

Quizplus · Accepted Answer

To calculate the government's Unrestricted Net Position, we must subtract the government's restricted net position and the capital assets (net of depreciation) from the total assets and subtract the government's long-term debt (not issued to acquire capital assets) from the total liabilities.

Total Assets = $165 million 
($50 million in capital assets + $30 million restricted + $85 million unrestricted)

Total Liabilities = $80 million 
($60 million long-term debt issued to acquire capital assets + $20 million other liabilities)

Unrestricted Net Position = Total Assets - Total Liabilities - Restricted Net Position 
Unrestricted Net Position = $165 million - $80 million - $30 million 
Unrestricted Net Position = $55 million

Therefore, the correct answer is C) $45 million.

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