On December 1, Year 1, Coal Creek County places an order for two bulldozers to be used to construct the county's new library. The budgeted cost of each bulldozer is $35,000 and purchase orders are issued. The first bulldozer arrives on December 20, Year 1 and has a cost of $38,000. The second bulldozer is on backorder and will arrive sometime in Year 2. What is the amount in the encumbrance account for the bulldozers on December 31, Year 1? 

• A. $70,000 

• B. $35,000 

C. $32,000 

 D. $0