During the Year, a Wealthy Local Merchant Donated a Building

question 17

Multiple Choice

During the year, a wealthy local merchant donated a building to the City of Rosewood. The original cost of the building was $300,000. Accumulated depreciation at the date of the gift amounted to $250,000. The appraised fair market value of the donation at the date of the gift was $600,000. At what amount should this contribution be recorded in the governmental activities accounts at the government-wide level?

• A) $50,000.
• B) $300,000.
• C) $600,000.
• D) $0.

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Definitions:

Indefinitely

An unspecified period of time that may continue forever, without a predetermined endpoint.

Dividend

A portion of a company's earnings distributed to its shareholders, usually periodically.

Preferred Stock

A type of stock that provides dividends before common stock and has priority over common stock in the event of liquidation.

Annual Dividend

The total amount of dividends a company pays out to its shareholders in one fiscal year.