What must be subtracted from capital assets when preparing the government-wide statement of net position?

When preparing the government-wide statement of net position, depreciation must be subtracted from capital assets to reflect their net book value accurately. Capital assets, such as buildings, equipment, and infrastructure, are subject to wear and tear over time, and depreciation accounts for this reduction in value due to usage or aging.

By including depreciation, the financial statement presents a more realistic view of the government's resources, as it shows the current book value of assets rather than their original cost. This process aligns with the accrual basis of accounting, ensuring that the financial reports provide users with an accurate representation of the government's economic resources and obligations.

Other factors like capital acquisitions, beginning capital assets, and sales of capital assets do not directly pertain to the annual decrement in value that depreciation illustrates. Therefore, subtracting depreciation is essential for accurately stating the net position of capital assets on the financial statements.