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On July 1, 2019, a city used tax resources of $70,000 to acquire three police...

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Accounting

On July 1, 2019, a city used tax resources of $70,000 to acquire three police cars. The police cars were expected to have a useful life of three years, after which the salvage value would be $10,000. The city policy is to depreciate capital assets using the straight-line method. Describe the adjustment or adjustments needed to prepare government-wide financial statements from the city's calendar year 2019 fund-level financial statements

A. Record capital assets, reduce capital outlay expenditures, and record depreciation ($10,000)

B. Record capital assets, reduce capital outlay expenditures, and record depreciation ($20,000)

C. No adjustments are needed

D. Record capital assets, and record six months' depreciation ($10,000)

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