Question
Marloweville, with 20,000 residents is deciding how to finance the construction of a new municipal stadium that will enhance both recreation and tourism in the
Marloweville, with 20,000 residents is deciding how to finance the construction of a new municipal stadium that will enhance both recreation and tourism in the area, The construction cost of the stadium is $10,000,000. By law all proceeds from debt issuance are places in Marloweville's captial projects fund, and all capital expendictures are made using this fund.
1 Show how Marloweville would recordd the transactions if it were to issue a 10,000,000 bond and then use the proceeds to construct the stadium
2 Show how Marloweville would recrod the transaction if it were to finance 50% of the construction with a municipal bond and 50% thru a transfer from economic development fund (a government fund)
3 If at the end of the fiscal year, marloweville makes a loan repayment of 250,000 plus a 50,000 intrest payment the total expenditure for the transaction will equal
a 0
b 250,000
c 50,000
d 300,000
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