Use the Following Information to Answer Questions

Multiple Choice

Use the following information to answer Questions
Construction activities for Oneida County for 2020 are as follows:
1) A capital projects fund is established for the construction of a recreation center. The total project is estimated to cost $15,000,000, with funding to come from a $9,000,000 general obligation bond issue, a $4,000,000 federal grant, and a $2,000,000 transfer from the general fund.
2) The general fund transfers $2,000,000 to the capital projects fund.
3) $3,500,000 of the federal grant is received in cash.
4) The bond issue with a par value of $9,000,000 yields $9,002,000. The premium is transferred to the debt service fund to finance payment of bond principal and interest.
5) A contract for $14,800,000 is awarded to a contractor.
6) Invoices for $8,000,000 are received for work performed by the contractor. The town has a 5% retainage policy and pays the contractor $7,600,000 in cash.
7) The county's spending policy is to use restricted resources first.
The county uses the GAAP budgetary basis for end-of-year encumbrances.
-What is the 2020 increase in total fund balances for the capital projects fund?

A) $7,400,000
B) $7,000,000
C) $6,500,000
D) $6,900,000