Question

On January 1, 2017, the City of Graf pays $68,000 for a work of art to display in the local library. The city will take appropriate measures to protect and preserve the piece. However, if the work is ever sold, the money received will go into unrestricted funds. The work is viewed as inexhaustible, but the city has opted to depreciate this cost over 20 years (using the straight-line method).Required:a. How is this work to be reported on the government-wide financial statements for the year ended December 31, 2017?b. How is this work to be reported in the fund financial statements for the year ended December 31, 2017?

Answer 1

Answer: The answer has been attached below

Explanation:

Financial statements are the formal records of financial activities and position of an individual, a business, or other entity. The relevant financial information is typically presented in a structured manner and in an understandable form.

Financial statements can include balance sheet, income statement, statement of cash flows, the notes to accounts and statement of changes in equity.

The solution to the question is attached.