Reference no: EM132978115

Problem - A city opens a solid waste landfill that it expects to fill to capacity gradually over a 10 year period. At the end of the first, second, third, and fourth year it was 6%, 15%, 25% and 37% filled, respectively. The costs of closure and postclosure were estimated at $2.5 million for the first year and second year and $6 million for the third year. The city made payments of $10,000, 30,000 and $20,000 in the second, third and fourth year, respectively. If this landfill is judged to be a proprietary fund, what liability and expense did the city report at the end of the third year on its government wide and fund financial statements?