Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik

تمرين 48

A city starts a solid waste landfill that it expects to fill to capacity gradually over a 10-year period. At the end of the first year, it is 8 percent filled. At the end of the second year, it is 19 percent filled. Currently, the cost of closure and post closure is estimated at $I million. None of this amount will be paid until the landfill has reached its capacity.
If this landfill is judged to be a governmental fund, what liability will be reported at the end of the second year on fund financial statements
A) $-0-.
B) $110,000.
C) $190,000.
D) $200,000.