A county government demands vacant land from the city to construct an airport exercising the right of "eminent domain." The city is required by state law to forfeit the land for a price of $10,000,000 which is its current fair value. The city bought the land for $8,000,000. This is considered an unusual and infrequent event for the city. Prepare the city's entry in the General Fund
A county government demands vacant land from the city to construct an airport exercising the right of "eminent domain." The city is required by state law to forfeit the land for a price of $10,000,000 which is its current fair value. The city bought the land for $8,000,000. This is considered an unusual and infrequent event for the city. Prepare the city's entry in the General Fund
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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H1.
Transcribed Image Text:A county government demands
vacant land from the city to
construct an airport exercising the
right of "eminent domain." The
city is required by state law to
forfeit the land for a price of
$10,000,000 which is its current
fair value. The city bought the
land for $8,000,000. This is
considered an unusual and
infrequent event for the city.
Prepare the city's entry in the
General Fund
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