Choice "D" is correct. Since the general fund has the equity interest, only the available and expendable portion of the investment should be recorded in that fund. The available and expendable portion would not include any equity interest. The portion of the equity interest in the joint venture that represents the government's investment in the net position of the venture is recorded in the government-wide statement of net position.
Choice "c" is incorrect. Trust funds are used to account for resources of the governmental unit acting as a trustee.
Choice "a" is incorrect. Agency funds are used to account for funds where the governmental entity is acting as a custodian.
Choice "b" is incorrect. Internal service funds are used to account for resources within a governmental unit, not a joint venture.