In 2015, the City of Coyote received a $320,000 cash grant from the state to reduce air pollution. Assume that although a special revenue fund could have been set up, the money remained in the general fund. Cash was received immediately but had to be returned if the city had not lowered air pollution by 25 percent by 2018. On December 31, 2015, Coyote spent $210,000 of this money for a large machine to help begin the process of reducing air pollution. The machine is expected to last for five years and was recorded as an expenditure in the general fund and as an asset on the government-wide financial statements where it was depreciated based on the straight-line method and the half-year convention. Because the money had been received, all $320,000 was recorded as a revenue on both the fund and the government-wide financial statements.
a. What was the correct change for 2015 in the total fund balance reported by the general fund?
b. What was the correct overall change in the net position reported on the government-wide financial statements?