Answer:
The amount of $5,250,000 should be recorded as capital assets in the town's governmental activities accounts
Explanation:
Capital Assets: The capital assets are that asset that is not made for a sale. It records only tangible assets like- cars, bonds, investment properties, etc,
The computation of the capital assets which is recorded in the town's governmental activities accounts is shown below:
= Town buildings + Streets, sidewalks, and water lines 2,000,000
= $3,250,000 + $2,000,000
= $5,250,000
So, the intangible assets is not a capital asset. Therefore, we do not consider in the computation part.
