The following relates to the town of Coupland (Dollar amounts in thousands): Equipment used in a vehicle repair service that provides service to other departments on a cost-reimbursement basis; the equipment has a 5-year life with no salvage value $1,400 Property taxes levied and collected $6,300 Hotel taxes (restricted to promotion of tourism) collected $1,200 Proceeds of bonds to build a parking garage that must be repaid from user charges $4,000 Using the information above to answer the following questions: Revenue to be recognized In internal service fund?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following relates to the town of Coupland (Dollar amounts in thousands):

  • Equipment used in a vehicle repair service that provides service to other departments on a cost-reimbursement basis; the equipment has a 5-year life with no salvage value $1,400
  • Property taxes levied and collected $6,300
  • Hotel taxes (restricted to promotion of tourism) collected $1,200
  • Proceeds of bonds to build a parking garage that must be repaid from user charges $4,000

Using the information above to answer the following questions:

Revenue to be recognized In internal service fund?

A.) 0

B.) $1,400

C.) $140

D.) None of above

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