On April 1, 2005, Oak County incurred the following expenditures in issuing long-term bonds:
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|
Issue costs |
$400,000 |
|
Debt insurance |
90,000 |
Oak County has established a debt service fund for the payment of interest and principal of its long-term bonds. Assuming Oak County’s fiscal year ends of June 30, what amount of issue costs and debt insurance costs should be reported as an asset on the governmental funds’ balance sheet at June 30, 2005?
- $0
- $ 90,000
- $400,000
- $490,000