Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik

Exercise 2

The City of Wilson receives a large sculpture valued at $240,000 as a gift to be placed in front of the municipal building. Which of the following is true for reporting the gift on the government-wide financial statements
A) A capital asset of $240,000 must be reported.
B) No capital asset will be reported.
C) If conditions are met, recording the sculpture as a capital asset is optional.
D) The sculpture will be recorded but only for the amount paid by the city.