The city council of the City of Great Falls decided to pool the investments of its General Fund with those of Great Falls School District and Great Falls Township, each of which carried its investments at fair value as of the prior balance sheet date. All investments are revalued to current fair value at the date of the creation of the pool. At that date, the prior and current fair value of the investments of each of the participants were as follows:

	Investments
Prior Fair Value	Current Fair Value
General Fund	$ 600,000	$ 590,000
Great Falls School District	3,600,000	3,640,000
Great Falls Township	1,800,000	1,770,000
Total	$ 6,000,000	$ 6,000,000

1. At the date of the creation of the investment pool, each of the participants should

multiple choice 1

Debit its Fund Balance account and credit its Investments account for the prior fair value of the assets transferred to the pool.

Debit or credit its Investments account as needed to adjust its carrying value to current fair value. The offsetting entry in each fund should be to Fund Balance.

Debit Equity in Pooled Investments for the current fair value of investments pooled, credit Investments for the prior fair value of investments pooled, and credit or debit RevenuesChange in Fair Value of Investments for the difference.

Make a memorandum entry only.

1. One day after creation of the pool, the investments that had belonged to Great Falls Township were sold by the pool for $1,760,000.

multiple choice 2

The loss of $40,000 is borne by each participant in proportion to its equity in the pool.

The loss of $10,000 is considered to be a loss borne by Great Falls Township.

The loss of $40,000 is considered to be a loss borne by Great Falls Township.

The loss of $10,000 is borne by each participant in proportion to its equity in the pool.

1. One month after creation of the pool, earnings on pooled investments totaled $59,900. It was decided to distribute the earnings to the participants, rounding the distribution to the nearest dollar. The Great Falls School District should receive

multiple choice 3

$36,000.

$35,940.

$36,339.

$37,000.

Please show all calucations and equations! Thank you so much!!