Use the Following to Answer Questions 24 and 25

question 17

Multiple Choice

Use the following to answer questions 24 and 25:
A city starts a solid waste landfill during 2017. When the landfill was opened the city estimated that it would fill to capacity within 5 years and that the cost to cover the facility would be $1.5 million which will not be paid until the facility is closed. At the end of 2017, the facility was 20% full, and at the end of 2018 the facility was 45% full.
[QUESTION]
-If the landfill is judged to be a governmental fund, what liability is reported on the fund financial statements at the end of 2018?

• A) $ 0.
• B) $300,000.
• C) $375,000.
• D) $600,000.
• E) $675,000.

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Definitions:

Ratification

The act of officially approving or confirming an agreement or action, making it valid and binding.

Implied Ratification

The acceptance or approval of a previously unauthorized act by behaving in a manner that acknowledges the act as authorized.

Express Ratification

Formal approval or confirmation of an act or agreement, usually explicitly and often in writing, making it officially valid.

Misrepresentation

The act of giving a false or misleading statement about a material fact, often leading to a breach of contract.