5. A governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances reported of $30 million, including capital outlay expenditures of $9 million. Capital assets for that government cost $90 million, including land of $10 million. Depreciable assets are amortized over 20 years, on average. The reconciliation from governmental changes in fund balances to governmental activities changes in would reflect a(an):

A. Decrease of $4 million.

B. Increase of $5 million.

C. Increase of $1 million.

D. Decrease of $1 million.

7. Which of the following adjustments would be made when moving from the governmental funds balance sheet to the governmental activities column in the government-wide Statement of Net Position?

A. Add balances of internal service fund assets and liabilities.

B. Add beginning capital assets, net of depreciation.

C. Neither A nor B choices is correct.

D. Both A and B choices are correct.