Question 1:

Note the following may not be actual accounting rules at this point, but information needed to answer this question.

To properly account for cryptocurrency, a city looks at various guidance. At the end of the year, the cryptocurrency is worth $10,000 based on the open market, and the costs of selling are 0.5 percent. Industry standards value the cryptocurrency on open market value only (without looking at selling costs), while the GASB bulletin 2021-04 values at market value less selling cost. How should the city entity value the currency? The cryptocurrency originally costs $25,000

A- 10,000

B- 9,950

C- 25,000

D- 24,500

Question 2

Proprietary funds use the.....

A- economic resources measurement focus & accrual basis of accounting.

B- current financial resources measurement focus and modified accrual basis of accounting

C- economic resources measurement focus and modified accrual basis of accounting

D- Cash basis of accounting

please answer both questions