A governmental fund's Statement of Revenues,Expenditures,and Changes in Fund Balances reported expenditures for capital outlay in the amount of $5,000,000.Capital assets for that government cost $110,000,000,including $15,000,000 in land.Depreciable assets are amortized over 20 years,on average.The reconciliation from the governmental funds changes in fund balances to the governmental activities change in net assets would reflect a(an):

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The reconciliation would reflect an increase of $250,000. This is because the capital outlay expenditure of $5,000,000 is recorded as an expense in the governmental fund, but for government-wide financial statements, it should be capitalized and depreciated. The annual depreciation for the depreciable assets (excluding land) is $95,000,000 / 20 = $4,750,000. The difference between the capital outlay and the depreciation is $5,000,000 - $4,750,000 = $250,000, which results in an increase in net assets.

A Governmental Fund's Statement of Revenues,Expenditures,and Changes in Fund Balances