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A city opens a solid waste landfill that it expects to fill to capacity gradually over a $21-$year period. At the end of Year One, it is $13$ percent filled. At the end of Year Two, it is $29$ 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 governmental fund, what liability will the city report at the end of Year Two on fund financial statements?

Multiple Choice

$$290,000$

$$ $$0$

$$ $$300,000$

$$ $$160,000$