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 the general fund, how does it appear in the fiscal 2019 CAFR?

1. $4,000,000 other financing use in the governmental funds operating statement and $3,200,000 capital asset in the government-wide statement of net position.

2. $4,000,000 expenditure in the governmental funds operating statement and the government-wide statement of activities.

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

4.$3,200,000 capital asset in the governmental funds balance sheet and the government-wide statement of net position.