The city of Miami issued a 6-month, 5%, $7,000,000 bond anticipation note (BAN) on November 1^st 201x to provide initial financing for the construction of a bridge. The issuance of long-term bonds whose proceeds Miami 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 Miami has incurred $2,000,000 in construction costs on the bridge by 12/31/1x, Miamis fiscal year-end, the fund balance of the Capital Projects Fund used by Miami to account for the bridge project would total

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

2 True or False: Based on the information provided above, the $7,000,000 BAN principal would

be reported in the citys GLTL.