4. The City of Wheat Ridge (a local governmental body) sells a building for $2 million in cash to the Jefferson County Red Cross Chapter (a Not-for-Profit Organization). Remember the distinctions between modified accrual and accrual accounting. (16 points)

a. Show the transaction as it would appear on the Citys modified accrual transaction sheet. Assume it is a General Fund transaction. Assets = Liabilities + Fund Balance

b. Show the transaction as it would appear for the not-for-profit Red Cross. Assets = Liabilities + Net Assets

c. If the Red Cross borrowed money to buy the building, show the transaction of the first years loan repayment of $150,000 ($100,000 principal and $50,000 interest). Assets = Liabilities + Net Assets

d. The Red Cross utilizes the straight-line method of depreciation for its property, plant and equipment. Given a useful life of 25 years for the building and no salvage value, show the transaction that would be recorded at the end of the second year they own the building. Assets = Liabilities + Net Assets