Computation of net assets invested in capital assets, net of related debt The fo

Question

Computation of net assets invested in capital assets, net of related debt

The following information is taken from the financial statements of Keeler Water District 2, an Enterprise Fund. Based on these data, compute the amount that Fund should report on its statement of net assets, as net assets invested in capital assets, net of related debt.

Buildings $1,100,000

Water mains and equipment 5,200,000

Accumulated depreciation, capital assets 2,300,000

Current portion of revenue bonds payable 450,000

Long-term portion of revenue bonds payable 1,800,000

Explanation / Answer

Net Asset invested in capital asset :

Building       1,100,000

Water mains and equipment    5,200,000

Less:Accumulated depreciation   (2,300,000)

Net capital asset invested          4,000,000

Less:Debt    (450,000+1,800,000)     (2,250,000)

Net investment                                 1,750,000

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.