Glen County uses governmental fund accounting and is the administrator of a multiple jurisdiction deferred compensation plan covering both its own employees and those of other governments participating in the plan. This plan is an eligible deferred compensation plan under the U.S. Internal Revenue Code and Income Tax Regulations, and it meets the criteria for a pension (and other employee benefit) trust fund. Glen has legal access to the plan's $40 million is assets, of which $2 million pertain to Glen and $38 million to the other participating governments. In Glen's balance sheet, what amount should be reported in an agency fund for plan assets and as a corresponding liability?
a) $0
b) $2,000,000
c) $38,000,000
d) $40,000,000
Answer: A
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