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On January 1, 2010, a rich citizen of the Town of Ristoni donates a painting valued at $300,000 to be displayed to the public in a government building. Although this painting meets the three criteria to qualify as an artwork, town officials choose to record it as an asset. There are no eligibility requirements for the gift. The asset is judged to be inexhaustible so that depreciation will not be reported.
A. For the year ended December 31, 010, what will be reported on government-wide financial statements in connection with this gift?
B. How does the answer to requirement (a) change if the government decides to depreciate this asset over a 10-year period using straight-line depreciation?
C. How does the answer to requirement (a) change if the government decides not to capitalize the asset?
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