Prepare the reconciliation of change in total fund balance to change in net assets for governmental activities for the City of Riner, given the following information. Net increase in Gov. Fund Balances $500,000
Expenditures – capital outlay equipment $3,500,000
Expenditure – debt service principal 200,000
Expenditure – Interest 200,000
Other financing source – proceeds from sale of land 120,000
Other financing source – proceeds of bonds 1,000,000
Other financing source – premium on bonds 100,000
Transfers from the General Fund 1,100,000
Transfer to the Debt Service Fund 1,100,000
Revenue property taxes 1,500,000
Increase in compensated absences reported as general long-term liabilities 23,000
Increase in accrued interest reported as general long-term liabilities 12,000

Additional information:

Land sold had a book value of $25,000.
Deferred property taxes were $10,000 at the beginning of the year. Deferred property taxes at the end of the year were $12,000.
Depreciation for the year is $2,000,000

The gilbert instrument corporation is considering replacing the wood steamer it currently uses to shape guitar sides. the steamer has 6 years of remaining life. if kept,the steamer will have depreciaiton expenses of $650 for five years and $325 for the sixthyear. its current book value is $3,575, and it can be sold on an internet auction site for$4,150 at this time. if the old steamer is not replaced, it can be sold for $800 at the endof its useful life. gilbert is considering purchasing the side steamer 3000, a higher-end steamer, whichcosts $12,000 and has an estimated useful life of 6 years with an estimated salvage value of$1,500. this steamer falls into the macrs 5-year class, so the applicable depreciationrates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. the new steamer is fasterand allows for an output expansion, so sales would rise by $2,000 per year; the newmachine's much greater efficiency would reduce operating expenses by $1,900 per year.to support the greater sales, the new machine would require that inventories increase by$2,900, but accounts payable would simultaneously increase by $700. gilbert's marginalfederal-plus-state tax rate is 40%, and its wacc is 15%.a. should it replace the old steamer? b. npv of replace = $2,083.51