At the beginning of fiscal 2019, a county government acquires equipment for $4,000,000. The equipment has an estimated life of 5 years, and straight-line depreciation is used, with no residual value, if appropriate. At the end of fiscal 2020 (two years later), the government disposes of the equipment for $1,800,000.

If the equipment is reported in an enterprise fund, how does it appear in the fiscal 2019 CAFR?

A. 4,000,000 expenditure in the proprietary funds operating statement and the government-wide statement of activities.

B. $4,000,000 expenditure in the proprietary funds operating statement and $3,200,000 capital asset in the government-wide statement of net position.

C. $3,200,000 capital asset in the proprietary funds balance sheet and the government-wide statement of net position.

D. $4,000,000 other financing use in the proprietary funds operating statement and $3,200,000 capital asset in the government-wide statement of net position.