True/False

1.If a capital projects fund starts construction of a building in one year and finishes it in a subsequent year, no entry needs to be made in the governmental activities accounts until the building is completed, inspected, and accepted.

2.A governmental unit must capitalize the cost of improvements such as roads, bridges, sidewalks, and so forth, because the Governmental Accounting Standards Board (GASB) requires disclosure of the cost of such assets in the basic financial statements.

3.General capital assets must be depreciated and the amount of depreciation for the period should be reported in the operating statements for the governmental fund types.

4. The general fund expended $100,000 to buy land to be used by the city electric utility as a site for an office building. This land should be capitalized in the utility fund, not in the governmental activities accounts.

5. If land purchased by a proprietary fund of a city, at a cost of $50,000, is later transferred to the city park department (accounted for by the general fund), it should be recorded in the governmental activities accounts at fair market value on the date of transfer.