A city starts a solid waste landfill during 2020. When the landfill was opened the city estimated
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Question:
A city starts a solid waste landfill during 2020. When the landfill was opened the city estimated that it would fill to capacity within 6 years and that the cost to cover the facility would be $1.8 million which will not be paid until the facility is closed. At the end of 2020, the facility was 15% full, and at the end of 2021 the facility was 35% full. If the landfill is judged to be a governmental fund, what liability is reported on the fund financial statements at the end of 2021?
a. $360000. b. $270,000. c. $540,000. d. $630,000. e. $0.
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