A city has a General Fund and an Enterprise Fund. During the year, legal claims are filed against the resources of both funds
City attorneys believe that each claim will ultimately be settled for about $55,000, but settling claims of this kind usually is about a three-year process. How much should be reported as a liability in each fund's balance sheet at the end of the current year?
General Enterprise
Fund Fund
a. $0 $0
b. $0 $55,000
c. $55,000 $0
d. $55,000 $55,000
b
Business
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