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A city constructs curbing in a new neighborhood and

A city constructs curbing in a new neighborhood and finances it as a special assessment. Under what condition should this activity be recorded in the Agency Fund?

a. Never; the work is reported in the Capital Projects Funds.
b. Only if the city is secondarily liable for any debt incurred to finance construction costs.
c. Only if the city is in no way liable for the costs of the construction.
d. In all cases.

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Financial Accounting: A city constructs curbing in a new neighborhood and

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