A governmental fund's Statement of Revenues,Expenditures,and Changes in Fund Balances reported expenditures of $40 million,including capital outlay expenditures of $11 million.Capital assets for that government cost $80 million,including land in the amount of $10 million.Depreciable assets are amortized over 10 years,on average.The reconciliation from governmental fund changes in fund balances to governmental activities change in net assets would reflect a(an):

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The reconciliation would reflect a $4 million increase because the capital outlay expenditures of $11 million are added back, and the depreciation expense of $8 million ($80 million - $10 million land = $70 million depreciable assets / 10 years) is subtracted, resulting in a net increase of $3 million.

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