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On January 1, 2017, the City of Graf pays $52,000 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

On January 1, 2017, the City of Graf pays $52,000 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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please both subparts answer without plagiarism i give up vote 

On January 1, 2017, the City of Graf pays $52,000 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). 1. How is this work to be reported on the government-wide financial statements for the year ended December 31, 2017? 2. How is this work to be reported in the fund financial statements for the year ended December 31, 2017?
Transcribed Image Text:On January 1, 2017, the City of Graf pays $52,000 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). 1. How is this work to be reported on the government-wide financial statements for the year ended December 31, 2017? 2. How is this work to be reported in the fund financial statements for the year ended December 31, 2017?
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