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Question 151

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Use the following information to answer bellow Questions
A county acquires equipment for $16,000,000 at the beginning of 2015. The equipment has an 8-year life, no residual value. At the beginning of 2021 (6 years later) , the equipment is sold for $9,000,000. Use straight-line depreciation, if appropriate.
-The equipment is used for a parking garage and is reported in an enterprise fund. What is reported in the enterprise fund's operating statement, related to this equipment, in 2015?


A) The equipment is not reported in the operating statement
B) Expense of $16,000,000
C) Expense of $2,000,000
D) Expenditure of $16,000,000

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