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<br />-27- <br />NOTE 3 – CAPITAL ASSETS <br /> <br />Capital asset activity for the year ended December 31, 2022 was as follows: <br /> <br />A. Changes in Capital Assets Used in Governmental Activities <br /> <br />Balance –Transfers and <br />Beginning Completed Balance – <br />of Year Additions Deletions Construction End of Year <br />Capital assets, not depreciated <br />Land 2,500$ –$ –$ –$ 2,500$ <br />Construction in progress 227,277 9,626 – (236,903) – <br />Total capital assets, not depreciated 229,777 9,626 – (236,903) 2,500 <br />Capital assets, depreciated <br />Buildings 907,712 – – – 907,712 <br />Office equipment 18,678 525 – – 19,203 <br />Infrastructure 1,563,728 – – 236,903 1,800,631 <br />Total capital assets, depreciated 2,490,118 525 – 236,903 2,727,546 <br />Less accumulated depreciation for <br />Buildings (312,199) (22,634) – – (334,833) <br />Office equipment (15,154) (1,272) – – (16,426) <br />Infrastructure (738,009) (75,632) – – (813,641) <br />Total accumulated depreciation (1,065,362) (99,538) – – (1,164,900) <br />Net capital assets, depreciated 1,424,756 (99,013) – 236,903 1,562,646 <br />Net capital assets 1,654,533$ (89,387)$ –$ –$ 1,565,146$ <br /> <br />B. Changes in Capital Assets Used in Business-Type Activities <br /> <br />Balance –Transfers and <br />Beginning Completed Balance – <br />of Year Additions Deletions Construction End of Year <br />Capital assets, depreciated <br />Infrastructure 1,547,940$ –$ –$ –$ 1,547,940$ <br />Less accumulated depreciation for <br />Infrastructure (285,669) (29,535) – – (315,204) <br />Net capital assets 1,262,271$ (29,535)$ –$ –$ 1,232,736$ <br /> <br />C. Depreciation Expense by Function <br /> <br />Depreciation expense was charged to the following functions: <br /> <br />Governmental activities <br />General government 23,906$ <br />Public works 74,882 <br />Conservation and development 750 <br />Total depreciation expense – governmental activities 99,538$ <br /> <br />Business-type activities <br />Water 13,469$ <br />Sewer 16,066 <br />Total depreciation expense – business-type activities 29,535$