A city maintains a solid waste landfill that was 12 percent filled at the end of Year 1 and 26 percent filled at the end of Year 2. During those periods, the government estimated that total closure costs would be $2 million. It pays $50,000 to an environmental company on July 1 of each of these two years to begin some of the restoration process. Such payments will continue for years to come. Indicate whether each of the following independent statements is true or false and briefly explain each answer. The city has a December 31 year-end.

a. The government-wide financial statements will show a $230,000 expense in Year 2 but only if reported in an enterprise fund.

b. Fund financial statements will show a $50,000 liability in Year 2 if this landfill is reported in the general fund.

c. Fund financial statements will show a $50,000 liability at the end of Year 2 if this landfill is reported in an enterprise fund.

d. If the city reports this landfill in an enterprise fund, government-wide financial statements and fund financial statements will have the same basic reporting.

e. Government-wide financial statements will show a $420,000 liability at the end of Year 2.

f. Assume the city reports the landfill in the general fund. Over the landfill’s entire life, the amount of expense recognized in government-wide financial statements will be the same as the amount of expenditures recognized in fund financial statements.