[misoc23]

Bunson Township was incorporated on January 1, Year 1, and is preparing its government-wide financial statements for the year ended December 31, Year 1. The governmental funds displayed a combined change in fund balance of $500,000 for that year and also had the following balances, data, or transactions:

Capital outlay of $250,000 partially funded by long-term debt proceeds of $225,000;

Current year depreciation of $60,000 on a capital asset base of $1,200,000;

Principal payments (on debt) of $40,000;

Interest payments (on debt) through October 1 of $30,000;

Principal payments of $10,000 incurred through December 31 but paid on January 2;

Interest payments of $7,500 incurred through December 31 but paid on January 2;

Sales tax revenues of $30,000 associated with December 31, Year 1 sales remitted to the State in February and paid to the Township in March.

The government-wide changes in net position would be displayed as:

a.

$527,500

b.

$587,500

c.

$597,500

d.

$455,000