On January 1 Year 4 the government leased a police

On January 1, Year 4, the government leased a police car for five years at $20,000 per year
with the first payment being made on December 31, Year 4. This is a capitalized lease. Assume
that, at a reasonable interest rate of 10 percent, the present value of a five-year annuity due is
$62,000. In the government-wide financial statements, the government recorded a $20,000
increase in expense and a $20,000 reduction in cash as its only entry. In the fund-based
financial statements, the government increased Expenditures by $20,000 and reduced Cash for
$20,000 as its only entry. a. According to the information provided, the overall increase in net
assets reported was $140,000. What was the correct overall change in the net assets in the
government-wide financial statements?b. According to the information provided, the General
Fund reported an increase of $30,000 in its fund balance. What was the correct change in the
fund balance for the General Fund? The government-wide financial statements indicated the
following Year 4 totals:Education had net expenses of $710,000.Parks had net expenses of
$130,000.Art museum had net revenues of $80,000.General revenues were $900,000; the
overall increase in net assets was $140,000.The fund-based financial statements issued for
Year 4 indicated the following:The General Fund had an increase of $30,000 in its fund
balance.The Capital Projects Fund had an increase of $40,000 in its fund balance.The
Enterprise Fund had an increase of $60,000 in its net assets.Officials for Wolfe define
“available” as current financial resources to be paid or collected within 60 days.View Solution:
On January 1 Year 4 the government leased a police
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