16. Governmental Accounting On July 1, 20X8,Clevelandesablished acaptalprojecstndto town hall. Financing for constraction came from the Sollowing sources (1) Transfer from the general fund (2) Revenue from state grant (3) Proceeds of general ebligation bonds 2.000,000 11.500,000 Construction of the town hall was complesed on June 15, 20x9. For the fiscal year ended June 30, capital projects fund report for revenues on its statement of revenues, enpenditures 20x9, what amout should Clevclands changes in fund balance? a. $1,000,000 b. $1,500,000 c. $3.500,000 d. $14,500,000 e. None of the above Company acquired 60 percent ownership of S Company"'s voting shares on lanuary 1 20X5, P purchased inventory for $25,000 and sold the full amouni to S for $35,000. On December31 17. Intercompany Sales. P acquired 20X3, S's ending inventory incladed $7,000 of items purchased from P Also during 20X S purchased inventory for S66.000 md sold theun stoPRrS0600 P included S48,000 of its purchase from s in ending iwentory on December 31, 20X5 P reported income of $12.500 dunng the year. including Income from S, and S reported income of $89,000. The Income to NC Interest is: a. $27,600 b. $29,400 c, S29.600 d. $35,600 e. None of the above 18. Consolidated Income. On January 1, 2015, P Company acquired 60 percent of S Company's outstanding common shares in exchange for $6,000 cash. The price paid for the 60 percent ownership interest was proportionately representative of the fair value of 60% of S's shares At acquisition date, S's books showed assets of $12,500 and liabilities of $7,500. The recorded assets and liabilities had fair of $1,000 had an appraised fair value of only $600. values equal to their individual book values except that a building (10-year remaining life) with book value Also, at acquisition date S possessed unrecorded copyrights (zero book value) with an estimated fair value of $2.000 and a 40-year life. During 2015 P Company reported net income of $200 (before recognition of S's income), and S separately reported carnings of $500. During 2015. S declared $100 in dividends At the end of 2015, one year after the acquisition, the consolidated financial statement should show the parent's share of consolidated income as: a. $440. b. $443. c. $474 $494. of the above. e. None of the above. 16. Governmental Accounting On July 1, 20X8,Clevelandesablished acaptalprojecstndto town hall. Financing for constraction came from the Sollowing sources (1) Transfer from the general fund (2) Revenue from state grant (3) Proceeds of general ebligation bonds 2.000,000 11.500,000 Construction of the town hall was complesed on June 15, 20x9. For the fiscal year ended June 30, capital projects fund report for revenues on its statement of revenues, enpenditures 20x9, what amout should Clevclands changes in fund balance? a. $1,000,000 b. $1,500,000 c. $3.500,000 d. $14,500,000 e. None of the above Company acquired 60 percent ownership of S Company"'s voting shares on lanuary 1 20X5, P purchased inventory for $25,000 and sold the full amouni to S for $35,000. On December31 17. Intercompany Sales. P acquired 20X3, S's ending inventory incladed $7,000 of items purchased from P Also during 20X S purchased inventory for S66.000 md sold theun stoPRrS0600 P included S48,000 of its purchase from s in ending iwentory on December 31, 20X5 P reported income of $12.500 dunng the year. including Income from S, and S reported income of $89,000. The Income to NC Interest is: a. $27,600 b. $29,400 c, S29.600 d. $35,600 e. None of the above 18. Consolidated Income. On January 1, 2015, P Company acquired 60 percent of S Company's outstanding common shares in exchange for $6,000 cash. The price paid for the 60 percent ownership interest was proportionately representative of the fair value of 60% of S's shares At acquisition date, S's books showed assets of $12,500 and liabilities of $7,500. The recorded assets and liabilities had fair of $1,000 had an appraised fair value of only $600. values equal to their individual book values except that a building (10-year remaining life) with book value Also, at acquisition date S possessed unrecorded copyrights (zero book value) with an estimated fair value of $2.000 and a 40-year life. During 2015 P Company reported net income of $200 (before recognition of S's income), and S separately reported carnings of $500. During 2015. S declared $100 in dividends At the end of 2015, one year after the acquisition, the consolidated financial statement should show the parent's share of consolidated income as: a. $440. b. $443. c. $474 $494. of the above. e. None of the above