23.At the start of the current year, a city enters into an agreement with a...
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Accounting
At the start of the current year, a city enters into an agreement with a privatelyowned corporation. In exchange for an upfront payment of $ million and a longterm receivable of $ million, the city transfers a newly constructed toll road to the corporation. The road was reported on the books of the city at its construction cost of $ million. The corporation receives the right to operate the road and collect tolls for a period of years. The toll rates are set forth in the agreement and adjust for inflation. Any changes in the rates other than those for inflation must be approved by the city. The expected useful life of the road is years. The receivable of $ million is to be repaid over years in equal amounts with interest at percent. Thus, annual payments would be $ million.
What is the Total Revenue to be reported by the City at Year
Question options:
$ Mill
$ Mill
$ Mill
$ MillThe city issues $ Million of bonds. The bonds are sold for $million. The issue cost is $ Million.
What are the Other financing sources be reported on a Governmental Fund at the date of issuance?
Question options:
$ Mill
$ Mill
$ Mill
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