$2.$ Assume that the city issues $30-$day revenue anticipation notes on December $30,$ Year $5,$ to finance the government until it collects new taxes. These notes are issued at their face value

of $$500,000.$ On the Year $5$ financial statements, a reconciliation is presented that starts with the total change in fund balances for the governmental funds and works down to end

with the total change in the new position for the governmental activities. As a result of the note issuance, this $$500,000$ must be subtracted as part of this reconciliation.