Chapter 17, Problem 47P

On the first day of the year, the City of Wolfe bought $20,000 of equipment with a 5-year life and no salvage value for its school system. It was capitalized but no other entries were ever made. The machine was monitored using the modified approach.

1. a. Based on the information provided above, what was the correct overall change in the net position in the government-wide financial statements?
2. b. What was the correct amount of net expenses for education in the government-wide statements?