On January $1,2022,$ a county's government$-$wide financial statements show general capital assets of $$2,400,000.$ For the year ended December $31,2022,$ the county's fund financial statement shows an amount of $$125,000$ next to the caption "Expenditures$--$capital outlay." To prepare its $2022$ government$-$wide financial statements, the preparer makes a worksheet that uses the $2022$ governmental fund$-$level financial statements as the starting point. As a result, the worksheet does not show any capital assets at the beginning of the year.

What adjusting entry is needed to report the required information about capital assets on the government$-$wide statements?

Select one:

a$.$

Capital assets$2,525,000$Expenditures$--$capital outlay$2,525,000$

b$.$

Capital assets$2,525,000$Net position$2,400,000$Expenditures$--$capital outlay$125,000$

c$.$

Capital assets$2,400,000$Expenditures$--$capital outlay$125,000$Net position$2,525,000$

d$.$

Capital assets$125,000$Expenditures$--$capital outlay$125,000$