Use the following information to answer the next three questions: The City of Arabia opens a solid waste landfill in 2020 that is at 54 percent of capacity on December 31, 2020. City officials anticipate closure costs would total $2.4 million. None of these costs will be incurred until 2024 when the landfill is scheduled to be closed.

1. What is the liability that should appear on government-wide financial statements for this landfill as of December 31, 2020?

1. $-0-.
2. $1,296,000
3. $2,400,000
4. $3,696,000
5. None of the above

2. Assume the landfill is at 73 percent of capacity on December 31, 2021. What is the landfill closure expense that should appear on government-wide financial statements for this landfill as of December 31, 2021?

1. $-0-.
2. $1,752,000
3. $456,000
4. $688,200
5. None of the above.

3. Assume the landfill is accounted for as an enterprise fund. What is the liability that should appear in enterprise fund financial statements for this landfill as of December 31, 2020?

1. $-0-.
2. $1,296,000
3. $2,400,000
4. $3,696,000
5. None of the above