Given the following account balances from a trial balance:

Deferred Inflows - Property Taxes.... $40,000

Revenues.................................. 900,000

Expenditures.............................. 700,000

Encumbrance............................. 20,000

Special Item (sale of land).............. 15,000

Total Fund Balance..................... 62,000

The CLOSING ENTRIES would include a:

I. Credit to Fund Balance of $235,000

II. Credit to Special Item of $15,000

A. I only B. II only C. Both I & II D. Neither I nor II