Homework Problem: Werner County reported the following transactions during its fiscal year ended December 31, 2023:

On February 16, 2023, the county purchased a 15-year $100,000 bond for $99,800 with cash held in a debt sinking fund. During the year, the county received $3,000 in interest. At year-end, the market value of the bond was $99,950.

In December 2022, the Kunzite Foundation pledged up to $3 million to support the countys Art Museum. The foundation will contribute $1 for every $2 in admissions revenue generated by the Art Museum. During 2023, the Art Museum reported $4.0 million in admissions revenue. During January and February 2024, it reported an additional $1.0 million. The county received the matching contributions for both admissions amounts.

During the year, the county agreed to impose a license fee on all tanning salons operated in the county. Licenses cover the period July 1, 2023 to June 30, 2024. The county received license revenues of $150,000.

The county sold two police cars for salvage totaling $7,500. It had purchased the cars five years earlier at $30,000 each. The county had fully depreciated the police cars in its government-wide financial statements and a total salvage value of $5,000 had been anticipated.

The county received a $1.5 million grant from the state to reimburse the cost of its DAIKON program. The county incurred DAIKON program costs of $1.0 million during 2023 and an additional $500,000 in January and February 2024.

For parts a - k below, match these items with the amounts that follow. All amounts are for the year ended December 31, 2023. An amount may be selected once, more than once, or never. Show work where possible!

Questions:

a. Amount of investment income (interest, dividends, realized and unrealized gains and losses) recognized by the county in its debt service fund.

b. Amount of investment income (interest, dividends, realized and unrealized gains and losses) recognized by the county in its government-wide financial statements.

c. Amount recognized in the countys general fund on the sale of its police cars.

d. Gain/loss recognized on the sale of police cars in the countys government-wide financial statements.

e. DAIKON grant revenues recognized in the Countys government-wide financial statements.

f. DAIKON grant revenues recognized in the countys special revenue fund.

g. Contributions from the Kunzite Foundation in the countys Museum Fund (a special revenue fund).

h. Contributions from the Kunzite Foundation reported in the Countys government-wide financial statements.

i. License fee revenue reported in the countys general fund.

j. License fee revenue reported in the countys government-wide financial statements.

k. Reported value at December 31, 2023 of the countys investmen

Options: 1. $0 2. $3,150 3. $3,000 4. $150,000 5. $2,000,000 6. $1,000,000 7. $3,000,000 8. $500,000 9. $100,000 10. $99,950 11. $99,800 12. $2,500,000 13. $7,500

14. $2,500