Mecklenburg County, North Carolina's landfill is reported in a proprietary fund. On the county's 2010 CAFR, the liabilities section of the landfill's balance sheet reports landfill development and postclosure care costs in the amount of $8,374,290. Current expenses shown on the landfill's operating statement include $40,088 in development and postclosure costs
Required
a. The financial statement footnotes state that the landfill is at 72 percent of capacity at the end of fiscal 2010. What is the current cost estimate of total closure and postclosure costs for the landfill? What total expense was reported in previous financial statements for closure and postclosure costs?
b. If the landfill had been reported in a governmental fund, what amounts would appear in the financial statements of governmental funds, related to the landfill?
c. The landfill is expected to close in 2025. The landfill was at 66 percent of capacity at the end of 2008. Comment on the reasonableness of the expected closing date.
d. Based on the analysis above, what average expense must be accrued each year from 2011 to 2025? Comment on the adequacy of the expense reported in 2010.