A governmental funds 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 $11 million capital outlay is recorded as an expenditure in the governmental funds but should be capitalized and depreciated in the government-wide financial statements. The annual depreciation expense for the depreciable assets is $7 million ($70 million / 10 years). Therefore, the reconciliation would reflect a $4 million increase ($11 million capital outlay - $7 million depreciation).

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