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

Exercise 3

The City of Bacon is located in the County of Pork. The city has a school system and reports buildings at a net $3.6 million although they are actually worth $4.2 million. The county has another school system and reports buildings at a net $5.2 million although they are actually worth $5.6 million. Both school systems are viewed as special purpose governments. If the school systems are combined in a merger, what should be reported for the buildings
A) $8.6 million.
B) $8.8 million.
C) $9.4 million.
D) $9.8 million.