If a predominant portion of an internal service funds operating income results from billings to enterprise funds,

The internal service fund should be converted to an enterprise fund.

The government should report the internal service funds residual assets, deferred inflows and outflows of resources, and liabilities within the Business-type Activities column in the statement of net position.

The government should present the internal service fund as a major fund in a separate column of the proprietary fund statements.

The internal service fund should be combined with other governmental funds in the Governmental Activities column in the statement of net position.