An Internal Service Fund Had the Following Transactions During the Year

question 64

Multiple Choice

An internal service fund had the following transactions during the year ended June 30,20X9,its first year of existence:
(1) Received $1,000,000 contribution from the general fund.
(2) Acquired fleet of cars for $950,000,paying cash.
(3) Billed departments in other funds $500,000 for using cars.
(4) Incurred operating costs,exclusive of depreciation,of $240,000.
(5) Depreciation expense amounted to $250,000.
-Refer to the above information.On the internal service fund's balance sheet on June 30,20X9,total net assets should be reported at:

• A)$1,000,000.
• B)$1,010,000.
• C)$1,250,000.
• D)$910,000.

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Definitions:

Ignition Key

A key used to activate the ignition system of a vehicle, enabling the engine to start.

Mirror Neurons

Neurons that fire both when an individual acts and when the individual observes the same action performed by another, thought to be involved in processes such as learning by imitation.

Imitation

The action of using someone or something as a model and attempting to replicate their behavior, actions, or characteristics.

Observational Learning

Learning that occurs by watching the actions and outcomes of others' behaviors, without direct experience.