The city of Chicago issued a 6-month, 5%, $7,000,000 bond anticipation note (BAN) on November 1^st 2019 to provide initial financing for the construction of a bridge over a river to connect a main road. The issuance of long-term bonds whose proceeds Chicago will use to pay for the entire bridge project had already received legally required voter approval when the BAN was issued, and the city is required to use the long-term bond proceeds to pay off the BAN principal and related interest when due.

1. Assuming Cleveland has incurred $2,000,000 in construction costs on the bridge by 12/31/19, Chicagos fiscal year end, the fund balance of the Capital Projects Fund used by Chicago to account for the bridge project would total

1. ($5,000,000)
2. ($2,058,333)
3. $2,000,000
4. $5,000,000