The following information is available about items that differ between the governmental funds and the government-wide statements. Assume that there are no internal service funds. The schedule of capital assets prepared for the year ended December 31, 2025, includes the following items:

The bond was issued at the beginning of the year, and the following amortization schedule is available.

The net change in fund balances— total governmental funds was $1,100,000.

Required:

Prepare the reconciliation of the statement of revenues, expenditures, and changes in fund balances to the statement of activities on a government- wide basis for the year ended December 31, 2025.

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Government Activities Total Capital Assets (at gross) Less: Accumulated Depreciation Net Capital Assets Beginning Balance $700,000 (170,000) $530,000 Additions $50,000 (30,000) $20,000 Retirements $(25,000) 17,500 $ (7,500) Ending Balance $725,000 (182,500) $542,500