Question

The state government maintains an investment pool for itself and local governments in the state. The investment pool received t $22,000,000 from the state general fund, $5,000,000 from the state university system (an enterprise fund of the state), and $ 15,000,000 from local governments located in the state. What amount should be reported in the State’s Investment Trust Fund?

Answer 1

Answer:

$15,000,000

Explanation:

The local government comes under the control of state directly. The amount received from local government should be reported in state's investment trust fund.

Answer 2

Answer:

$5000000 is the amount reported on the states investment trust fund

Explanation:

We need to look into which funds are investments that are directed to better the state by means of a long run win which $22000000 is from the state general fund therefore not an investment to the state because its for general operations in the state, then $5000000 is to be reported in the states investment trust fund because the university amount is an enterprise fund of the state directly involved  to the state, $15000000 is from local governments located in the state therefore directed at assisting local governments that are in the state and to be split among those government and not a state investment.