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Business, 24.11.2020 23:30 zimbabwayjerry

The City of Captiva is preparing its government-wide financial statements from its fund financial statements. The City maintains a landfill for solid waste disposal and estimates that its total capacity is 10 million tons. At the end of the prior year, the City estimated that it had used 3 million tons and reported a liability for closure and postclosure costs of $3 million. During the year, the City estimates that it used an additional 500,000 tons of capacity. Closure and postclosure costs are expected to be $10 million when the Landfill reaches capacity. a. Calculate the current period cost.

Current period cost = $ 0

b. What reconciliation entries must the City include in its government-wide financial statements relating to the Landfill Liability at the beginning of the year and as of the end of the year?

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