Problem The City of Cohenville operates a solid waste landfill. Assume the initial cost for closure was set as Assume the initial cost for closure was set at $15 million, with post-closing maintenance set at $6 million. During Year 1 Cohenville makes a payment on closure costs. At the end of Year 1 it’s determined that 18% of the available space has been filled. At the end of Year 2, 32 % of the landfill has been filled and an additional payment of $500,000 was made. The closing costs are now estimated to be $17 million and post closure maintenance costs to be $7.5 million.

Assuming Cohenville is preparing government-wide financial statements:

A.) Prepare all necessary journal entries for Years 1 and 2

B.) How much should the landfill closure liability be at the end of Year 2? B.)