$9.$ Salvador County issued $$25$ million of $5$ percent demand bonds for construction of a county maintenance building. The county has no take$-$out agreement related to the debt. It estimates that $20$ percent of the bonds would be demanded $($called$)$ by the buyers if interest rates increased by at least one percentage point. At year$-$end, rates on comparable debt were $7$ percent. How should these demand bonds be reported in the governmental fund financial statements at year$-$end?

a$)$ $$25$ million in the capital projects fund.

b$)$ $$5$ million in the capital projects fund AND $$20$ million would be reported in the schedule of changes in long$-$term obligations.

c$)$ $$20$ million in the capital projects fund AND $$5$ million would be reported in the schedule of changes in long$-$term obligations.

d$)$ $$25$ million in the schedule of changes in long$-$term obligations.

$10.$ Voters of Valdez School District, a public school district, approved construction of a new high school at a cost not to exceed $$20$ million. The district will finance the construction by issuing $$20$ million of $6$ percent term bonds payable in $20$ years. Because the site had already been prepared, the school district began construction immediately but the bonds would not be issued for nearly a year. Shortly before the fiscal year$-$end, the school district borrowed $$5$ million from a local bank due in one year with interest at $6\mathrm{.}2$ percent. The note will be repaid from bond proceeds. The school district secured a financing agreement with the bank to convert the debt to a $10-$year debt if the school district is unable to sell the bonds by the due date. At year$-$end, how should the $$5$ million note be displayed in the governmental fund financial statements?

a$)$ Capital projects fund$$Notes payable $$5$ million; Nothing in the schedule of changes in long$-$term obligations.

b$)$ Capital projects fund$$Notes payable $$5$ million; $$15$ million in the schedule of changes in long$-$term obligations.

c$)$ Capital projects fund$$Encumbrances of $$5$ million; $$15$ million in the schedule of changes in long$-$term obligations.

d$)$ Nothing in the capital projects fund AND $$5$ million notes payable in the schedule of Changes in long$-$term obligations.

$11.$ Dumas County has a December $31$ fiscal year$-$end. In November, the county borrowed $$8$ million from a local bank, due in six months at $6$ percent interest, to finance general government operations. The county pledges property tax revenues to secure the loan. At year$-$end, how should the county display the bank note in the governmental fund financial statements?

a$)$ Nothing in the General Fund; Nothing in the schedule of changes in long$-$term obligations.

b$)$ General fund$--$$$8$ million in other financing sources; Nothing in the schedule of changes in long$-$term obligations.

c$)$ General fund$--$$$8$ million in other financing sources; $$8$ million in the schedule of changes in long$-$term obligations.

d$)$ General fund$--$$$8$ million in notes payable; Nothing in the schedule of changes in long$-$term obligations.

$12.$ GASB Statement No $87$ requires specifies which of the following

a$)$ Leases one year or more in length must be accounted for as a financing lease

b$)$ The lessee account for the lease as if it had purchased the rights to the asset and borrowed the purchase price.

c$)$ The treatment of leases of buildings, land and equipment, but excludes the treatment of intangible assets

d$)$ All of the above.