1. A government borrowed $20 million by issuing general obligation bonds to finance construction of a new airport terminal for its Airport Enterprise Fund. The bonds were issued at par, and the government intends to service the bonds from Enterprise Fund revenues. At year end, none of the bond proceeds has been spent. The bonds payable would be included in which component of net position of an Enterprise Fund?

A. Unrestricted net position.

B. Restricted net position.

C. Net investment in capital assets.

D. Temporarily restricted net position

2. A city's Enterprise Fund received $3,000,000 cash in the form of a capital grant during the fiscal year ended June 30, 20X3. The Enterprise Fund incurred and paid construction costs from that grant in the amount of $1,200,000. What amount should be reported on the Enterprise Fund Statement of Net Position as net investment in capital assets?

A. $0

B. $1,200,000

C. $1,800,000

D. $3,000,000