1.A county uses the legal budgetary basis to report encumbrances. Information for its latest fiscal year is as follows:

Encumbrances outstanding at the beginning of the year	$50,000
Encumbrances outstanding at the end of the year	75,000
Excess of revenues and other financing sources over expenditures and other financing uses, legal budgetary basis	860,000

What is the excess of revenues and other financing sources over expenditures and other financing uses, using the GAAP budgetary basis?

A.$810,000

B.$835,000

C.$885,000

D.$935,000

2.A county's general fund bought equipment for $50,000. The equipment was estimated to have a 10-year life, straight-line, no salvage value. Four years later, it sold the equipment for $18,000. In the year of the sale, the government-wide statement of activities will report

A.Loss on sale of capital assets of $12,000

B.Proceeds from sale of capital assets of $18,000

C.Loss on sale of capital assets of $32,000

D.Proceeds from sale of capital assets of $32,000