Federal Taxation Chapter 6 Paper

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CHAPTER 6: ACCOUNTING FOR GENERAL LONG-TERM LIABILITIES AND DEBT SERVICE OUTLINE |Number |Topic |Type/Task |Status | | | | |(re: 14/e) | |Questions: | | | | |6-1 |Defining general long-term liabilities; financial reporting |Define and explain |Same | |6-2 |Disclosures…show more content…
bonds and enterprise funds |Explain |Same | |6-5 |Debt limit and debt margin |Calculate |New | |6-6 |Overlapping debt |Explain |New…show more content…
Further, the project was found to have significant public benefit; therefore, the judge ordered the city to use public taxes to pay a majority of the cost of the project. As a result of this case, the city adopted a new and, many would argue, fairer policy for financing future capital projects that provide both public and private benefit. Further, the revised city ordinance requires a public hearing for all special assessment and other public improvement projects, as well as public notification in local newspapers. b. If, as in this case, the government provides secondary backing for special assessment bonds, then accounting and financial reporting are not affected by who pays the debt service on the project. Issuance of the bonds is recorded as an other financing source in the capital projects fund and as general long-term liabilities at the government-wide level, regardless of who pays debt service on the bonds. Moreover, capital projects fund accounting and reporting for street construction would not be affected by the verdict. Ch. 6, Solutions, Case 6-1 (Cont’d) Even debt service fund accounting is unaffected by the verdict since the city had

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