Assume That an Internal Service Fund Purchases Land on Which

Multiple Choice

Assume that an Internal Service Fund purchases land on which to construct a new warehousing facility. The fund paid cash for 30% of the purchase price and financed the reminder with a loan from a local lending institution. The Internal Service Fund will

A) Increase Net Investment in Capital Assets.
B) Report capital outlay expenditures.
C) Depreciate the cost of the land over its useful life.
D) Record the land in the General Capital Assets accounts.