A city had $ 50,000 of capital assets at the start of the calendar year 2018 and that accumulated depreciation on the assets was $ 20,000. Pass an adjusting journal entry on Jan. 1, 2018. 1. Capital Assets Dr. 20,000 To Accumulated Depreciation 20,000 2. Capital Assets Dr. 50,000 To Accumulated Depreciation 20,000 To Net Position 30,000 3. Accumulated Depreciation Dr. 50,000 To Capital Assets 50,000 4. Capital Assets Dr. 30,000 Accumulated Depreciation Dr. 20,000 To NetPosition 50,000