Section A provides a list of transactions or events that occurred during the year, followed by Section B, a list of the possible effects each transaction or event has on adjusting net position accounts at year-end, assuming that all temporary accounts have already been closed to the account Net Position—Unrestricted.
Section A
1. Depreciation was recorded for the year.
2. A fully depreciated computer was sold for $50.
3. Bonds issued to construct the new library were retired.
4. Construction expenditures were incurred for the new fire substation.
5. Grant funds that can only be used for a summer kids’ camp remain un-expended at year-end.
6. A short-term lease was entered into during the year.
7. A $3 million endowment was received during the year.
8. Several new fire trucks were purchased and 70 percent financed with long-term notes.
9. The capital projects fund transferred its residual fund balance to the debt service fund during the year.
10. A grant received in the prior year for after-school recreational activities was expended.

Section B
a. Restricted Net Position is increased and Unrestricted Net Position is decreased.
b. Restricted Net Position is decreased and Unrestricted Net Position is increased.
c. Net Investment in Capital Assets is increased and Unrestricted Net Position is decreased.
d. Net Investment in Capital Assets is decreased and Unrestricted Net Position is increased.
e. None of the above.

Required
Identify how the net position categories would need to be adjusted for each of the transactions. For the statement in Section A, select the appropriate answer from Section B.