Assume that both component units qualify for discrete presentation. On its governmental wi
Assume that both component units qualify for discrete presentation. On its governmental wide statements, the township elects to combine the two units into a single column.
a) Prepare a government -wide statement of net assets (on a full accrual basis) that presents both the township and its component units.
b) Comment on the significance of the column in which the two compnent units are presented.
2. Suppose instead that the town is required to blend the component units.
a) Prepare a government-wide statement of net assets. Be sure to show the transportation authority as a business-type activity.
b) If the township were to prepare fund statements, how would it report the housing authority's special revenue fund? How would it report its general fund?