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Use the following information for problems 14, 15, and 16 (The following information applies to the questions displayed below.) A city opens a solid waste landfill that it expects to fill to capacity gradually over a 8-year period. At the end of the first year, it is 15 percent filled. At the end of the second year, it is 33 percent filled. Currently, the cost of closure and postclosure is estimated at $1 million. None of this amount will be paid until the landfill has reached 90 percent of its capacity. Problem 17-14 (Algo) (LO 17-5) Which of the following is true for the Year 2 government-wide financial statements? Multiple Choice Both expense and liability will be $180,000. Expense will be $170,000 and liability will be $340,000. O Expense will be $180,000 and liability will be $330,000. Both expense and liability will be zero. Use the following information for problems 14, 15, and 16 (The following information applies to the questions displayed below.) A city opens a solid waste landfill that it expects to fill to capacity gradually over a 8-year period. At the end of the first year, it is 15 percent filled. At the end of the second year, it is 33 percent filled. Currently, the cost of closure and postclosure is estimated at $1 million. None of this amount will be paid until the landfill has reached 90 percent of its capacity. Problem 17-15 (Algo) (LO 17-5) If this landfill is judged to be a proprietary fund, what liability will the city report at the end of the second year on its fund financial statements? Multiple Choice o $340,000. $180,000 $0. O $330,000. Use the following information for problems 14, 15, and 16 [The following information applies to the questions displayed below.) A city opens a solid waste landfill that it expects to fill to capacity gradually over a 8-year period. At the end of the first year, it is 15 percent filled. At the end of the second year, it is 33 percent filled. Currently, the cost of closure and postclosure is estimated at $1 million. None of this amount will be paid until the landfill has reached 90 percent of its capacity. Problem 17-16 (Algo) (LO 17-5) If this landfill is judged to be a governmental fund, what liability will the city report at the end of the second year on fund financial statements? Multiple Choice $340,000 $180,000 $330,000 $0

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