For each of the following indicate the amount (if any) of an expenditure/expense that the city would recognize in (1) its budget, (2) its fund statements, and (3) its government-wide statements. Provide a brief explanation of your response. a. As budgeted, the city ordered supplies that cost $8 million, received supplies (including those ordered in a prior year) that cost $9 million, paid for supplies that cost $7 million, and used supplies that cost $7.5 million. The city began the year with a supplies inventory that cost $1.5 million.
b. In the prior year, the city signed a five-year lease of telecommunications equipment. The equipment had a fair-market value of $5 million. In the current year, the city made its first required annual rent payment of $1,252,282. This amount reflected an implicit interest rate of 8 percent. The lease qualifies as a capital lease.
c. The government of the state in which the city is located is responsible for making 50 percent of the city's required contribution to a firefighters' life insurance fund. In the current year, the state and the city each contributed $4 million of the required $8 million.