1. A governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances reported expenditures of $30 million, including capital outlay expenditures of $5 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 net assets would reflect a(an):

A) Decrease of $1 million.

B) Increase of $l million.

C) Increase of $5 million.

D) Decrease of $4 million.

Answer: B

please show the calculation.