A City acquired general capital assets as follows;1. It purchased new construction equipment. List price was $400,000, but the city was granted a 10 percent government discount. The city also incurred $12,000 in transportation costs and paid $4,000 to its own employees to customize the equipment.;2. It received a donation of land to be set aside for a nature preserve. The land had cost the donor $300,000. At the time of the contribution it was valued on the city's tax rolls at $1.7 million. However, independent appraisers estimated its fair market value at $1.9 million.;3. It constructed a new maintenance facility at a cost of $2 million. During the period of construction the city incurred an additional $110,000 in interest on funds borrowed to finance the construction.;Indicate the value that the government should assign to these assets. Justify briefly the value you assigned and, as appropriate, indicate any other acceptable alternatives.
Paper#20837 | Written in 18-Jul-2015Price : $22