On January 1, 2019, a County's Government-Wide Financial Statements Shows $\begin{array}{lr}\text { Capital assets } & 2,525,000 \\\quad \text { Expenditures - capital outlay } & & 2,525,000 \\\end{array}$

On January 1, 2019, a county's government-wide financial statements shows general capital assets of $2,400,000. For the year ended December 31, 2019, the county's fund financial statement shows an amount of $125,000 next to the caption "Expenditures-capital outlay." To prepare its 2019 government-wide financial statements, the preparer makes a worksheet that uses the 2019 governmental fund-level financial statements as the starting point. As a result, the worksheet does not show any capital assets at the beginning of the year. What adjusting entry is needed to report the required information about capital assets on the government-wide statements?
a.
$\begin{array}{lr}\text { Capital assets } & 2,525,000 \\\quad \text { Expenditures - capital outlay } & & 2,525,000 \\\end{array}$

b.
$\begin{array}{lr}\text { Capital assets } &125,000 \\\quad \text { Expenditures - capital outlay } & &125,000 \\\end{array}$

c.
$\begin{array}{lr}\text { Capital assets } &2,525,000 \\\quad \text { Net position } &&2,400,000 \\\quad \text { Expenditures - capital outlay } &&125,000 \\\end{array}$

d.
$\begin{array}{lr}\text { Capital assets } &2,400,000\\\text { Expenditures - capital outlay } &125,000\\\quad \text { Net position } &&2,525,000\end{array}$