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1.) An Enterprise Fund entered into a capital lease for the purchase of equipment. The capitalizable cost of the asset was $300,000 and fund made
1.) An Enterprise Fund entered into a capital lease for the purchase of equipment. The capitalizable cost of the asset was $300,000 and fund made a $30,000 down payment. In the year of inception the Enterprise Fund would report
A. An other financing use of $270,000 and expenses of $30,000.
B. Capital assets of $300,000.
C. Long-term liabilities of $300,000.
D. Expenses of $30,000.
2.)
Which of the following would be included in determining operating income of an Enterprise Fund?
A. | Depreciation expense. | |
B. | Transfers. | |
C. | Interest expense. | |
D. | Capital contributions. |
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