The Public Utilities Enterprise Fund Was Ordered by the Court

The Public Utilities Enterprise Fund was ordered by the court to pay environmental damages of $500,000. The fund is to pay $100,000 immediately and the remaining $400,000 in equal installments for next four years. In the year of the judgment, the Enterprise Fund would report

A) $500,000 in expenses.
B) $500,000 in liabilities.
C) $100,000 in expenses.
D) Nothing. All amounts would be recorded in General Long-term Liabilities accounts.