A governmental fund's Statement of Revenues, Expenditures, and Changes in Fund Balances reported expenditures for capital outlay in the amount of $5,000,000. Capital assets for that government cost $110,000,000, including $20,000,000 in land. Depreciable assets are amortized over 20 years, on average. The reconciliation from the governmental funds changes in fund balances to the governmental activities change in Net Position would reflect aan):

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Quizplus · Accepted Answer

$5,000,000 of capital outlay expenditures would be an addition and $4,500,000 of depreciation expense would be a subtraction which result in a $500,000 increase. Depreciation expense: $110,000,000 - $20,000,000)/20 years = $4,500,000

A Governmental Fund's Statement of Revenues, Expenditures, and Changes in Fund