At the beginning of fiscal 2019, a county government acquires equipment for $4,000,000. The equipment has an estimated life of 5 years, and straight-line depreciation is used, with no residual value, if appropriate. At the end of fiscal 2020 (two years later), the government disposes of the equipment for $1,800,000.

If the equipment is reported in the general fund, how is its disposal reported in the fiscal 2020 CAFR?

1. $1,800,000 revenue in the governmental funds operating statement and $600,000 loss in the government-wide statement of activities.

2. $1,800,000 other financing source in the governmental funds operating statement and $600,000 loss in the government-wide statement of activities.

3. $1,800,000 revenue in the governmental funds operating statement and the government-wide statement of activities.

4. $600,000 loss in the governmental funds operating statement and the government-wide statement of activities.