E. 6-11. A government opts to set aside $10 million of general fund resources to finance a new city hall. Construction is expected to begin in several years, when the city has been able to accumulate additional resources.2. A government should distinguish underwriting and other issue costs from bond premiums and discounts and should3. When a government issues bonds at premiums or discounts and records the proceeds in a capital projects fund, it should4. A city holds U.S. Treasury notes as an investment in a capital projects fund. During the year the market value of the notes increases by $50,000. Of this amount, $14,000 can be attributed to a decline in prevailing interest rates and $36,000 to interest that has been earned but not yet received. As of year-end, the city should recognize as revenue5. Which of the following accounts is least likely to be shown on the balance sheet of a debt service fund?6. Special assessment debt should be reported on the balance sheet of a city if the debt is to be paid from assessments on property owners and7. In its fund statements a government should recognize revenue from special assessments8. In the year it imposes a special assessment, a government should recognize in its government-wide statements9. Under existing federal statutes, arbitrage as it applies to state and local governments10. Bond refunding are most likely to result in an economic gain when
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