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.