A Government Reported an "Other Financing Source" in the Amount

question 128

Multiple Choice

A government reported an "other financing source" in the amount of $750,000,related to the sale of land in its governmental funds Statement of Revenues,Expenditures,and Changes in Fund Balances.The land had a cost of $300,000.The adjustment in the reconciliation,when moving from the governmental Funds Statement of Revenues,Expenditures,and Changes in Fund Balances to the change in net position for governmental activities in the Statement of Activities would be a(an) :

• A) Increase of $450,000.
• B) Decrease of $450,000.
• C) Decrease of $300,000.
• D) Increase of $300,000.

---

Definitions:

Tax Rates

The percentage at which an individual or corporation is taxed, varying based on income level.

Long-term Capital Gains

Profits from the sale of an asset held for more than a year, generally taxed at a lower rate than short-term capital gains or regular income.

Collectibles

Items of personal property that are considered valuable due to rarity, demand, or historical significance, potentially subject to special capital gains tax rates upon sale.

Capital Gain Transactions

Deals involving the sale of an asset, such as stocks, bonds, or real estate, where the sale price exceeds the purchase price, resulting in income that can be taxed at preferential rates.