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 12 million tons. At the end of the prior year, the City estimated that it had used 5 million tons and reported a liability for closure and postclosure costs of $5 million. During the year, the City estimates that it used an additional 2,500,000 tons of capacity. Closure and postclosure costs are expected to be $12 million when the Landfill reaches capacity. a. Calculate the current period cost.
Reconciliations to yield government-wide financial statements (landfill closure liability)
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 12 million tons. At the end of the prior year, the City estimated that it had used 5 million tons and reported a liability for closure and postclosure costs of $5 million. During the year, the City estimates that it used an additional 2,500,000 tons of capacity. Closure and postclosure costs are expected to be $12 million when the Landfill reaches capacity.
a. Calculate the current period cost.
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