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 governement-wide statement of net position atDecember 31, 2015, the police cars will be reported under assets in the governmental activities column at which of the following amounts?

40,000

$32,500

$0.00

$22,500