3.

The GASB establishes financial reporting standards for state and local governmental entities. An entity created by a government possessing one or more of the following characteristics should follow GASB standards: O Only a and b O The potential that another government could unilaterally dissolve the entity and assume their assets and liabilities O Any of the above. O The power to enact and levy a tax. O The power to directly issue debt, for which its interest is exempt from federal taxation