On the first day of the year, the City of Wolfe bought $20,000 of equipment with a five-year life and no salvage value for its school system. It was capitalized but no other entries were ever made. The machine was monitored using the modified approach.

a. What was the correct overall change in the net assets in the government-wide financial statements?

b. What was the total of correct net expenses for education in the government-wide statements?

The City of Wolfe has issued its financial statements for Year 4 (assume that the city uses a calendar year). The city maintains the General Fund made up of two functions: (1) education and (2) parks. The city also utilizes capital projects funds for ongoing construction and an enterprise fund to account for its art museum. It also has one discretely presented component unit.