During 2012 Luling Township engaged in the following transaction related to modernizing the bridge the Luling River. The township accounts for long term construction projects in a capital project fund.

On July 1 it issued 10 year, 4 percent bonds with a face value of $1 million. The bonds were sold for $1,016,510, an amount that provides an annual yield of 3.8 percent (semiannual rate of 1.9 percent). The city incurred $10,000.00 in issue costs.

On August 1 it was awarded a state reimbursement grant of $800,000. During the year it incurred allowable costs of $600,000. Of these it paid $500,000 in cash to various contractors. It received $450,000 from the state, expecting to receive, early in 2013, the $150,000 difference between allowable costs incurred and cash received. Moreover, it expects to receive the balance of the grant later in 2013.

It invested the bond proceeds in short term federal securities. During the year it received $8,000 in interest and at year end the market value of the securities was $1,000 more than the township had paid for them. It transferred the bond premium (net of issue cost) to an appropriate fund.

It transferred $20,000 from the general fund to an appropriate fund to cover the first payment of bond interest which was due, and paid, on December 31.

On January 1, the township defeased in substance $400,000 of bonds that had been issued years earlier to construct the bridge. The bonds had been issued at par. To effect the transaction the township issued $405,000 of new bonds, at par, and placed the proceeds in a trust. The old bonds have a coupon rate of 5 percent; the new bonds have a coupon rate of 4 percent.

What amount should Luling report in its December 31, 2012, financial statement as:

1. Nonreciprocal transfers in to its debt service fund 2. Interest expenditures in its debt service fund 3. Interest expense on its government wide statements (prior to taking into account amortization of the bond premium) 4. Investment revenue in its capital fund 5. Bonds payable in its capital projects fund 6. Total expenditures in its capital projects fund 7. Bonds proceeds in its capital project fund 8. Bonds proceeds in its debt service fund 9. Loss on defeasance in its debt service fund 10. Grant revenue in its capital project fund 11. Grants receivable in its capital project fund 12. Bonds payable (on issue of july 1 only) in its government wide statements Select each response from the amounts that follow. An amount may be selected once, more than once, or not at all.

a. $0 b. $8,000 c. $9,000 d. $16,510 e. $19,314 f. $20,000 g. $26,510 h. $38,627 i. $150,000 j. $200,000 k. $400,000 l. $405,000 m. $200,000 n. $600,000 o. $610,000 p. $1,000,000 q. $1,006,510 r. $1,016,510 s. $1,015,824