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16 January, 19:08

During the year an enterprise fund purchased $230,000 worth of equipment. The equipment was acquired with a cash down payment of $30,000 and a $200,000 loan. A partial year of depreciation on the equipment was taken in the amount of $23,000. What is the net effect of this transaction on the net position accounts of the enterprise fund?

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  1. 16 January, 22:09
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    The net investment in capital assets is increased by $7,000.

    Explanation:

    Details amount amount

    equipment $230,000

    Partial year-depreciation ($23,000)

    Net value of the equipment $207,000

    acquired load ($200,000)

    increase in capital assets $7,000

    Therefore, The net effect of this transaction on the net position accounts of the enterprise fund is, The net investment in capital assets is increased by $7,000.
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