In addition to a capital asset in the government-wide Statement of Net Assets, how would the construction costs of $2,950,000 be reported at year-end?

Question

Quizplus · Accepted Answer

The construction costs would be reported as an expenditure of the capital projects fund because it is a capital project, and also as a capital asset in the government-wide Statement of Net Assets because it meets the capitalization threshold. The construction costs would not be reported as an expense in the Statement of Activities because it is a capital project and not an operating expense.

In Addition to a Capital Asset in the Government-Wide Statement