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The government-wide financial statements provide the following figures: - Education reports net expenses of $618,000. - Parks reports net expenses of $115,000. - Art museum

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The government-wide financial statements provide the following figures: - Education reports net expenses of $618,000. - Parks reports net expenses of $115,000. - Art museum reports net revenues of $65,250. - General government revenues for the year were $832,750 with an overall increase in the city's net position of $165,000. The fund financial statements provide the following for the entire year: - The general fund reports a $52,750 increase in its fund balance. - The capital projects fund reports a $57,250 increase in its fund balance. - The enterprise fund reports a $79,500 increase in its net position. The city asks the CPA firm of Abernethy and Chapman to examine several transactions that occurred during 2024 and indicate how to correct any erroneous reporting. Officials also want to know the effect of each error. View each of the following situations as independent. In 2024, the City of Coyote recelves a $495,000 cash grant from the state to reduce air pollution. Although a special revenue fund could have been set up, the money remains in the general fund. The cash was recelved immediately but will have to be returned if the city does not lower its air pollution by 25 percent by 2028 . On December 31,2024 . Coyote spends $376,000 of the money for a large machine to help begin the process of reducing air pollution. City officials expect the machine to last for flve years. The city recorded the cost as an expenditure in the general fund but as an asset on the government-wide financial statements, where it was depreciated based on the straight-line method and the half-year convention. Because the city recelved the money, it recorded all $495,000 as a revenue on both the fund and the government-wide financial statements. Required: a. What was the correct change for 2024 in the total fund balance reported by the general fund? b. What was the correct overall change in the net position reported on the government-wide financial statements

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