Use the Following Information to Answer Questions Bellow

Multiple Choice

Use the following information to answer Questions bellow:
At the beginning of fiscal 2019, a county government acquires equipment for $4,000,000. The equipment has an estimated life of 5 years, and straight-line depreciation is used, with no residual value, if appropriate. At the end of fiscal 2020 (two years later) , the government disposes of the equipment for $1,800,000.
-If the equipment is reported in the general fund, how does it appear in the fiscal 2019 CAFR?

A) $4,000,000 expenditure in the governmental funds operating statement and the government-wide statement of activities.
B) $4,000,000 expenditure in the governmental funds operating statement and $3,200,000 capital asset in the government-wide statement of net position.
C) $3,200,000 capital asset in the governmental funds balance sheet and the government-wide statement of net position.
D) $4,000,000 other financing use in the governmental funds operating statement and $3,200,000 capital asset in the government-wide statement of net position.