32. Which basis of accounting best maintains the original principal of a trust? A. Accrual basis. B. Cash basis. C. Modified accrual basis. D. Legal basis. 42. The City of Oak Park constructed a new storage facility using the city's own public works employees. Construction costs were incurred in the amount of $1,200,000, plus $25,000 in interest on short-term notes used to finance construction. What amount should be capitalized in the government-wide statements? A. $900,000. B. $1,200,000. C. $1,225,000. D. $0. 44. Which of the following statements is correct regarding depreciation? A. Depreciation expense should be recorded in the appropriate governmental funds, and recorded in the governmental activities accounts. B. Depreciation expense must be recorded in the governmental fund, but no depreciation expense is recorded in the governmental activities accounts C. No depreciation can be recorded in any governmental fund, but depreciation expense must be recorded in the governmental activities accounts. D. No depreciation can be recorded in any governmental fund, nor is it permissible to record depreciation expense in the governmental activities accounts