$2-20.$ Fund Balance Classifications. $($LO$2-4)$ Section A provides a list of the results of Allentown's analysis of its governmental fund balances at its fiscal year end. Section B provides a list of the possible classifications for reporting the items listed in Section A$.$

Section $A$

At year$-$end, a special revenue fund has a $$50,000$ fund balance on which there are no constraints.

Allentown has a $$1,000,000$ emergency reserve fund it set aside. According to the town ordinance, funds can only be used from this fund with approval of two$-$thirds of the governing body, which is the town council.

Allentown determined that the General Fund has $$22,000$ in inventory it should report on its fund financial statements.

Allentown issued bonds that sold at a premium. The $$100,000$ premium is required by contract to be used to pay the principal and interest on the debt when it comes due in a future period.

The federal government has provided a grant for emergency housing assistance that can only be used for low$-$income families. Allentown determined $$250,000$ of the grant funds remained at year$-$end.

Allentown had a balance in its prepaid insurance account of $$464,000$ at the end of the fiscal year.

At the end of the reporting period, Allentown's General Fund statement of revenues, expenditures, and changes in fund balances reported a net change in fund balances of $$154,238.$

Allentown's mayor indicated that he was setting aside $$25,000$ of funds for the future purchase of land for a town park.