Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 46

A city starts a solid waste landfill that it expects to fill to capacity gradually over a 10-year period.At the end of the first year, it is 8 percent filled.At the end of the second year, it is 19 percent filled.Currently, the cost of closure and post closure is estimated at $I million.None of this amount will be paid until the landfill has reached its capacity.
If this landfill is judged to be a proprietary fund, what liability will be reported at the end of the second year on fund financial statements
a.$-0-.
b.$110,000
c.$190,000.
d.$200,000.