Two Cities Entered into a Contractual Agreement to Operate a Landfill.The

Multiple Choice

Two cities entered into a contractual agreement to operate a landfill.The cities each contributed the necessary assets to operate the landfill in proportion to their populations.Each city has the ability to appoint two members of the governing body of the landfill.The assets contributed by First City were primarily in the form of property and equipment that had been used in general government activities.In what manner would the landfill be included in First City's fund financial statements?

A) In a governmental fund only.
B) In the schedule of capital assets only.
C) In a proprietary fund only.
D) Not be recognized in the financial statements.