_____ the Following Balances Appeared in the City of Reedbury's

_____ The following balances appeared in the City of Reedbury's General fund at 6/30/06:
$\begin{array} { l }&Dr.(Cr.) \\ \text {Encumbrances-current year }&\$200,000\\ \text { Expenditures: }&\\ \text {Current year }&3,000,000\\ \text { Fund Balance Reserved for Encumbrances:}&100,000\\ \text { Prior year }&\\ \text {Current year }&(200,000) \\ \text { Prior year}&None\\\end{array}$
Reedsbury maintains its General Fund books on a legal budgetary basis, requiring revenues and expenditures to be accounted for on a modified-accrual basis. In addition, the sum of current-year expenditures and encumbrances cannot exceed current-year appropriations. What total amount of expenditures (and encumbrances, if appropriate) should the city report in the General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance for the year ended 6/30/06?

A) $3,000,000
B) $3,100,000
C) $3,200,000
D) $3,300,000