A government reported an "other financing source" in the amount of $800,000, related to the sale of land in its governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances. The land had a cost of $375,000. The adjustment in the reconciliation, when moving from the governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the change in net position for governmental activities in the Statement of Activities would be aan:

Question

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Only the gain on the sale is reported in the Statement of Activities. In the governmental funds, the proceeds from the sale increase financial resources. The change in net position differs from the change in fund balance by the cost of the asset sold. The adjustment would be a decrease of $375,000, the cost of the land.

A Government Reported an "Other Financing Source" in the Amount