1. Topic in Government Accounting: Selling Assets to Yourself t
... the purchase. Over the course of the 30 years the agency will have to re-pay $490 million in interest and principal on those bonds. The state in turn leased the prison back from its agency at a cost equivalent to the principal and interest payments on the debt. And the sale of Attica was not the only such transaction in 1991. In that ... year the state recorded $1.9 billion in revenue from similar sales and leasebacks to off-budget agencies. In the previous year the state sold the Cross Westchester ... proceeds from the sale as income in the current period. After making all the entries...
- Word Count: 733
- Approx Pages: 3
- Grade Level: Undergraduate