The general fund of ABC city acquired two police cars at the beginning of January 2015, at a total cost of $40,000. The cars are expected to last for four years and have a $10,000 residual value. Straight-line depreciation is used.

On the BALANCE SHEET for the governmental funds atDecember 31, 2015, the police cars will be reported under assets in the general fund column at which of the following amounts?

$40,000

$32,500

$0.00

$22,500