A city opens a solid waste landfill that it expects to fill to capacity gradually over a $10-$year period. At the end of Year One, it is $8$ percent filled. At the end of Year Two, it is $19$ percent filled. Currently, the cost of closure and postclosure is estimated at $$1$ million. None of this amount will be paid until the landfill has reached $90$ percent of its capacity.

If this landfill is judged to be a proprietary fund, what liability will the city report at the end of Year Two on its fund financial statements?

Multiple Choice

$$110,000$

$$190,000$

$$200,000$

$$0$