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Question: On January 1, 2020, the City of


On January 1, 2020, the City of Graf pays $60,000 for a work of art to display in the local library. The city will take appropriate measures to protect and preserve the piece. However, if the work is ever sold, the money received will go into unrestricted funds. Officials view the work as inexhaustible, but they have opted to depreciate the cost over 20 years (using the straight-line method).
a. How is this work reported on government-wide financial statements for the year ended December 31, 2020?
b. How is this work reported in fund financial statements for the governmental funds for the year ended December 31, 2020?

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