The town of Brittainville has two Enterprise Funds—one for its water and wastewater operations and another for its cable television operation. The Water and Wastewater Enterprise Fund issued $11,000,000 of 6%, 15-year refunding bonds at par during the year (assume there were no bond issue costs). It also received a $175,000 federal grant to expand water and wastewater lines to economically depressed residential neighborhoods, but no qualifying expenditures have been incurred. The Cable Enterprise Fund made its annual payment of $1,000,000 to the General Fund to subsidize operations. It also was the recipient of a Federal Communications Commission unrestricted grant of $100,000.
How would the changes in net position amount be affected in the Water and Wastewater Enterprise Fund by the transactions listed?
Group of answer choices
Both the refunding transaction and the grant would increase the changes in net position.
Changes in net position would be decreased by the debt issuance; the grant would increase changes in net position.
Changes in net position would not be affected by either transaction.
Changes in net position would be increased by the debt issuance; the grant would increase changes in net position.