The Statement of Revenues, Expenditures, and Changes in Fund Balances from a governmental funds reported $3,500,000 in capital expenditure (outflow).

Additional info:

Capital assets cost - $99,000,000 (of these $15,000,000 accounts to Land).

Depreciable assets are amortized over 25 years, on average.

Reconcile the governmental funds changes in fund balances to the governmental activities change in Net Position. This would reflect a(an):

Increase of $140,000.

Decrease of $140,000.

Increase of $336,000.

Decrease of $336,000.