A citizen of York purchased a truck in 2003 for $50,000.On June 10,2009,she donated the truck to York.The fair value of the truck on the date of donation was $30,000.How should York report the truck in its government-wide Statement of Net Assets?

Question

Quizplus · Accepted Answer

The fair value of the truck at the time of donation should be recorded as a non-exchange transaction. Therefore, the machinery and equipment should be increased by the fair value of the truck, which is $30,000. The original cost of $50,000 should not be used as it does not represent the current value of the truck.

A Citizen of York Purchased a Truck in 2003 for $50,000.On