During its calendar year 2007, a city issued $800,000 of bonds to acquire various items of capital equipment. By the end of 2008, the city had spent...

During its calendar year 2007, a city issued $800,000 of bonds to acquire various items of capital equipment. By the end of 2008, the city had spent all the bond proceeds to purchase capital assets. Accumulated depreciation on the assets was $120,000, and $150,000 of the bonds had been paid off.