4. On 1/1/2020 a government has a reserve for encumbrances balance with $40,000 during the year the company ordered additional goods with estimated cost of $50,000 and received $60,000 of goods in the same year, the balance of reserve for encumbrances at 31/12/2020 is: a. $30,000 b. $150,000 c. $50,000 d. $60,000