The Town of Sitka opened a solid waste landfill in 2020 that was at 25% capacity on December 31, 2020 and at 60% capacity on December 31, 2021. The city initially anticipated closure costs of $2.8 million but in 2021 revised the estimate of the closure costs to be $3.2 million. None of these costs will be incurred until the landfill is scheduled to be closed.Prepare the journal entry that should be recorded on December 31, 2021 for government-wide financial statements.

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The Answer of The Town of Sitka opened a solid waste landfill in 2020 that was at 25% capacity on December 31, 2020 and at 60% capacity on December 31, 2021. The city initially anticipated closure costs of $2.8 million but in 2021 revised the estimate of the closure costs to be $3.2 million. None of these costs will be incurred until the landfill is scheduled to be closed.Prepare the journal entry that should be recorded on December 31, 2021 for government-wide financial statements.

The Town of Sitka Opened a Solid Waste Landfill in 2020