1. The Town of Massey reported a change in fund balances of $1,001,000 in its governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances for the year ended June 30, 2022. In addition, the following information is relevant:

A. Capital outlay expenditures amounted to $5,000,000 in the modified accrual statement. General government fixed assets amounted to $80,000,000, excluding land and had an average life of 20 years.

B. The modified accrual statement reported proceeds from the sale of land in the amount of $500,000. The land had a basis of $400,000.

C. Property taxes had been levied in the amount of $10,000,000.It was estimated that 3% would never be collected, that $500,000 would be collected within 60 days of year-end, and that $200,000 would be collected more than 60 days from year-end. The City had recognized the maximum permitted under modified accrual accounting.

D. $185,000 of property taxes had been deferred at the end of the previous year and was recognized under modified accrual as revenue in the current year.

E. The modified accrual statement reflected debt service expenditures in the amount of $500,000 for interest and $750,000 for principal. No adjustment was necessary for interest accruals at year-end.

F. Compensated absences charges, on the full accrual basis, amounted to $50,000 more than under the modified accrual basis.

Required:Prepare the reconciliation from the change in fund balances reported above to the change in net assets in the governmental column in the government-wide Statement of Activities for the year ended June 30, 2022.