An Enterprise Fund Is Donating a Capital Asset with a Net

question 30

Multiple Choice

An Enterprise Fund is donating a capital asset with a net book value of $25,000 to a general government department. The entry that should be recorded for the Enterprise Fund would be

• A) A debit to nonoperating expense and a credit to capital assets.
• B) A debit to transfer out and a credit to capital assets.
• C) A debit to capital contribution and a credit to capital assets.
• D) A debit to other financing use and a credit to capital assets.

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Definitions:

Cooperative Ownership

A form of property ownership where individuals own shares of a corporation that owns the property, providing members use rights.

Proprietary Lease

A lease agreement in a cooperative (co-op) building in which the resident is given the right to occupy a unit by holding shares in the cooperative rather than owning the unit outright.

Tenancy In Common

A form of joint ownership of property by two or more persons, where each owner has an undivided interest in the property and is entitled to an equal share of profits, but with no right of survivorship.

Equal Rights

The principle that all people should be treated equally under the law without discrimination.