The following applies to Q R21, 22. Several years ago, Grant County was sued by a former county employee for wrongful discharge. Allhough i was to be contested by the county, at the time of the lawsuit the atorneys believed that the county was most likely to lose the suit and the estimated amount of the ultimate judgment would be $100,000. This year, the case was finally settled with a judgment against the courky of $150,000, which was paid 21. Assuming that the county maintains its books and records in a manner to facilitate the preparation of its fund financial statements, Financial statement impact for the current year should be a) Increase Expenditures $150,000; Decrease Cash $150,000. b) Increase Expenses $150,000; Decrease Cash $150,000 e) Increase Expenditures $50,000 and Claims payable $100,000; Decrease Cash $150,000. d) Increase Expenses $50,000 and Claims payable $100,000; Decrease Cash $150,000. 22. Assuming that the county maintains its books and records in a manner to facilitate the preparation of its goverament-wide Financial statement impact for the current year should be Increase Expenditures $150,000; Decrease Cash $150,000. a) b) Increase Expenses $150,000; Decrease Cash S150,000. c) Increase Expenditures $50,000 and Claims payable S$100,000, Decrease Cash S150,000. d) Increase Expenses Ss0,000: Decrease Claims payable $100,000 and Cash $150,000 23. The following activities would be classified as a nonreciprocal interfund activity except a) Cash transfer from the general fund to a debt service fund to pay for principal and interest on long-ternm b) Transfer from a capital projects fund to the general fund to reimburse the general fiund for is payment of the related to new construction c) Purchase of supplies by the general fund from an internal service fund d) Transfer of funds from the general fund to establish a new internal service fund