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  3. 1) a county acquires equipment for $16,000,000 at

1) A county acquires equipment for $16,000,000 at the beginning of 2015. The equipment has...

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Accounting

1)

A county acquires equipment for $16,000,000 at the beginning of 2015. The equipment has an 8-year life, no residual value. At the beginning of 2021 (6 years later), the equipment is sold for $9,000,000. Use straight-line depreciation, if appropriate. The equipment is used for a parking garage and is reported in an enterprise fund. What is reported in the enterprise fund's operating statement, related to this equipment, in 2015?

Select one:

A. The equipment is not reported in the operating statement

B. Expense of $16,000,000

C. Expense of $2,000,000

D. Expenditure of $16,000,000

2)

A county acquires equipment for $16,000,000 at the beginning of 2015. The equipment has an 8-year life, no residual value. At the beginning of 2021 (6 years later), the equipment is sold for $9,000,000. Use straight-line depreciation, if appropriate. The equipment is used for general operations and is reported in the general fund. What is reported in the general fund's operating statement, related to this equipment, in 2015?

Select one:

A. The equipment is not reported in the operating statement

B. Expense of $16,000,000

C. Expense of $2,000,000

D. Expenditure of $16,000,000

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