The following information pertains to Smith Citys general fund for 2008:

Appropriations $6,000,000 Expenditures $6,500,000

Other financing uses $2,000,000 Other financing sources $1,500,000

Revenues $8,000,000

After their general fund accounts were closed at the end of 2008, fund balance increased by:

A. $1,000,000

B. $1,500,000

C. $2,500,000

D. $3,000,000

E. None of the above