QUESTION 12

The following relate to the town of Coupland(dollar amounts in thousands):

Equipment used in a vehicle repair service that provides service to other departments on a cost-reimbursement basis; the equipment has a 5-year life with no salvage value $1,400

Property taxes levied and collected $6,300

Hotel taxes (restricted to promotion of tourism) collected $1,200

Proceeds of bonds to build a parking garage that must be repaid from user charges $4,000

Using the information above to answer the following questions:

Revenue to be recognized in internal service fund?

1. 0
2. $1,400
3. $140
4. None of above