The City of Jamesville Had the Following General Fund Transactions $\begin{array} { l l l l } & \text { Outstanding Encumbrances } & & \text { Inventory } \\\end{array}$

The City of Jamesville had the following general fund transactions relating to materials and supplies during 2020:
•There were outstanding encumbrances at January 1, 2020 in the amount of $80,000. These items were received and paid at the encumbered amount in 2020.
•Materials and supplies ordered during 2020 were received and paid in the amount of $525,000.
•Outstanding encumbrances at December 31, 2020 totaled $65,000.
•Inventory of materials and supplies at December 31, 2020 was $20,000; inventory of materials and supplies at January 1, 2020 was $22,000.
Required
Determine the amount of expenditures for materials and supplies that would be reported by Jamesville for 2020 under each of the following accounting policies:
$\begin{array} { l l l l } & \text { Outstanding Encumbrances } & & \text { Inventory } \\\end{array}$
A) $\begin{array} { l l l l } & \text { Legal budgetary basis } & & \text { Purchases met hod } \\\end{array}$
B) $\begin{array} { l l l l } & \text { Legal budg etary basis } & & \text { Consumption method } \\\end{array}$
C) $\begin{array} { l l l l } & \text { GAAP budget ary basis } & & \text { Purchases method } \\\end{array}$
D) $\begin{array} { l l l l } & \text { GAAP budget ary basis } & & \text { Consumption method }\end{array}$