Choice "D" is correct. The property retained by the government becomes a general capital asset in the governmental activities column of the government-wide statement of net position and is capitalized at the lower of cost ($20,000) or market value ($60,000).Choice "a" is incorrect. The retained property would be capitalized and displayed in the governmental activities column of the government-wide statement of net position, not the general fund. The general fund does not record fixed assets.Choice "c" is incorrect. The asset would be capitalized at the lower of cost ($20,000) or market value ($60,000), not the higher of the two.Choice "b" is incorrect. The asset would be capitalized at the lower of cost ($20,000) or market value ($60,000), not the sum of the two.