The following information relates to Hudson City for its fiscalyear ended December 31, 2014.
⢠On January 31, 2014, the city purchased as an invest- ment forits debt service fund a fifteen-year, 6 percent, $1 million bondfor $998,000. During the year it received $30,000 in interest. Atyear-end the fair value of the bond was $999,500.
⢠On December 31, 2013, the Foundation for the Arts pledged todonate $1, up to a maximum of $1 million, for each $3 that themuseum is able to collect from other private contributors. Thefunds are to finance construc- tion of the city-owned art museum.During 2014, the city collected $600,000 and received the matchingmoney from the Foundation. In January and February 2015 itcollected an additional $2,400,000 and also received the matchingmoney.
⢠During the year the city imposed license fees on streetvendors. All vendors were required to purchase the licenses bySeptember 30, 2014. The licenses cover the one-year period fromOctober 1, 2014, through Septem- ber 30, 2015. During 2014 the citycollected $240,000 in license fees.
⢠The city sold a fire truck for $40,000 that it had acquiredfive years earlier for $250,000. At the time of sale the city hadcharged $225,000 in depreciation.
⢠The city received a grant of $2 million to partially reim-burse costs of training police officers. During the year the cityincurred $1,500,000 of allowable costs and received $1,200,000. Itexpects to incur an additional $500,000 in allowable costs inJanuary 2015 and to be reimbursed for all allowable costs by theend of February 2015. Refer to the two lists that follow. Selectthe appropriate amounts from the lettered list for each item in thenum- bered list. An amount may be selected once, more than once, ornot at all.
1. Amount of investment income that the city should recognize inits debt service fund
2. Reported value of bonds in government-wide state- ments atyear-end
3. Amount of investment income that the city should recognize inits government-wide statements
4. Contribution revenue from Foundation for the Arts to berecognized in funds statements
5. Contribution revenue from Foundation for the Arts to berecognized in government-wide statements
6. Revenue from license fees to be recognized in fundsstatements
7. Increase in general fund balance owing to sale of fireengine
8. Increase in net position (government-wide statements) owingto sale of fire engine
9. Revenue in fund statements from police training grant
10. Revenue in government-wide statements from police traininggrant
a. $0
b. $1,500
c. $15,000
d. $30,000
e. $31,500
f. $40,000
g. $60,000
h. $200,000
i. $225,000
j. $240,000
k. $600,000
l. $998,000
m. $999,500
n. $1,000,000
o. $1,200,000
p. $1,500,000
q. $2,000,000
