Brainfarts. Since paper division is classified as asset held for sale the asset should be recorded at F.V which is 570-70=500k.The book value is 540. So 40k unrealized loss is netted against the 120k profit and the amount 80k is what we show under discontinued.
The City of Redford maintains a vehicle garage. This activity services and repairs all of the vehicles owned by the government. The garage is reported as an Internal Service Fund because a charge is performed for all work done at an amount equal to 10 percent above cost. Most of the work performed in the garage relates to the servicing of the city's police cars although some work is carried out on cars used in other activities. In connection with the preparation of government-wide financial statements, which of the following statements is true?
A This Internal Service Fund will be included as a governmental activity.
B This Internal Service Fund will be included as a business-type activity.
C This Internal Service Fund will be included as a component unit.
D This Internal Service Fund will not be included in the government-wide financial statements.
A – I remember Internal Service and Enterprise are those Proipertary funds (I can't spell LOL)
Now i remember that Internal Service funds shows up with general funds in the reporting of Governmental actives. There as some musical chairs going on with how funds are reported.
The concept is simple. Though the Internal Service and Enterprise are those Proprietary funds most of the work is performed for police cars which is a gov activity. So they should be linked to Gov act
Suppose if most of the repairs are for Public buses then you can call it a business type activity.
NFP I seem to be decent in. Govt Well I am getting there…. so yes please post any Hard Govt or NFP questions you come across. I would like to at least be able to tackle them and learn from my mistakes
The police department of the City of Northern Ville has just ordered a new police car at an approximate cost of $96,000. How is this reported in the government-wide financial statements produced by the city?
A Financial commitments are not formally reported on the government-wide financial statements.
B As an encumbrance in the governmental activities
C As an encumbrance in the business-type activities
D As temporarily restricted net assets in the governmental activities
.