7. The police department of the city of Elizabeth acquires a new police car during the current year. In reporting the balance sheet for the governmental funds within the fund-based financial...

7. The police department of the city of Elizabeth acquires a new police car during the current year. In reporting the balance sheet for the governmental funds within the fund-based financial statements, what reporting is made of this police car?

a. It is reported as a police car at its cost.

b. It is reported as a police car at cost less accumulated depreciation.

c. It is reported as equipment at fair value.

d. It is not reported.