Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 68

On January 1, 2010, a city entered into the following leases for equipment items.Each of the leases qualifies as a capital lease.Initial payments are on December 31, 2010.An interest rate of 10 percent is viewed as appropriate.No bargain purchase options exist.
a.What balances should be reported on government-wide financial statements for December 31, 2010, and the year then ended
b.What balances should be reported on fund-based financial statements for December 31, 2010, and the year then ended