Required information A city starts a solid waste landfill that it expects to fill to capacity…

Required information
A city starts a solid waste landfill that it expects to fill to
capacity gradually over a 38-year period. At the end of the first
year, it is 14 percent filled. At the end of the second year, it is
31 percent filled. Currently, the cost of closure and postclosure
is estimated at $1 million. None of this amount will be paid until
the landfill has reached its capacity.
If this landfill is judged to be a governmental fund, what
liability will be reported at the end of the second year on fund
financial statements?

$170,000.

$0.

$320,000.

$310,000.