working according to the specified conditions. The city also spends another $91, 200 to construct lights for several new streets. Required: Prepare the entries assuming infrastructure assets are capitalized with depreciation recorded on government - wide financial statements. Prepare the entries assuming infrastructure assets are capitalized with government using the modified approach on government-wide financial statements.
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- A city government adds streetlights within its boundaries at a total cost of $355,000. These lights should burn for at least 10 years but can last significantly longer if maintained properly. The city develops a system to monitor these lights with the goal that 97 percent will be working at any one time. During the year, the city spends $49,800 to clean and repair the lights so that they are working according to the specified conditions. The city also spends another $86,200 to construct lights for several new streets. Prepare the entries assuming infrastructure assets are capitalized with depreciation recorded on government-wide financial statements. Prepare the entries assuming infrastructure assets are capitalized with government using the modified approach on government-wide financial statements.A city government adds streetlights within its boundaries at a total cost of $336,000. These lights should burn for at least 12 years but can last significantly longer if maintained properly. The city develops a system to monitor these lights with the goal that 97 percent will be working at any one time. During the year, the city spends $50,200 to clean and repair the lights so that they are working according to the specified conditions. The city also spends another $87,600 to construct lights for several new streets. a. Prepare the entries assuming infrastructure assets are capitalized with depreciation recorded on government-wide financial statements. b. Prepare the entries assuming infrastructure assets are capitalized with government using the modified approach on government- wide financial statements. Complete this question by entering your answers in the tabs below. Required A Required B Prepare the entries assuming infrastructure assets are capitalized with depreciation recorded…A city plans to upgrade its storm water management infrastructure by installing new pipes. The installation costs 2.7 million dollars and the annual maintenance cost is $27,000. Every 8 years, the system needs to be fully examined which requires a fixed management and material cost of $20,000 and a variable labor cost at the rate of $27/hr. 20 full time (working 8 hours per day) workers will be employed for 80 days for this task. If the infrastructure has a life time of 96 years and the city's interest rate is 7%, (Please round your answer to two decimal places at the million level for both questions, e.g. '1.23' millions) a. what is the capitalized worth of the project (in millions)? Please note that the value could be negative.
- A city government adds street lights within its boundaries at a total cost of $300,000. The lights should burn for at least 10 years but can last significantly longer if maintained properly. The city sets up a system to monitor these lights with the goal that 97 percent will be working at any one time. During the year, the city spends $48,000 to clean and repair the lights so that they are working according to the specified conditions. However, it spends another $78,000 to construct lights for several new streets in the city. Describe the various ways these costs could be reported on government-wide statements. 33P The City of Francois, Texas, has begun the process of producing its current comprehensive annual financial report (CAFR). Several organizations that operate within the city are related in some way to the primary government. The city’s accountant is attempting to determine how these organizations should be included in the reporting process. What is the major criterion for…A city government adds street lights within its boundaries at a total cost of $300,000. The lights should burn for at least 10 years but can last significantly longer if maintained properly. The city sets up a system to monitor these lights with the goal that 97 percent will be working at any one time. During the year, the city spends $48,000 to clean and repair the lights so that they are working according to the specified conditions. However, it spends another $78,000 to construct lights for several new streets in the city.Describe the various ways these costs could be reported on government-wide statements.A municipality is planning on constructing a water treatment plant at an initial cost of $10,000,000. Every 5 years, major repairs and cleanup are required at a cost of $2,000,000. Due to the necessity to remove sludge and make minor repairs, annual costs of operating the treatment plant are estimated to be $700,000, $775,000, $850,000, $925,000, and $1,000,000 each year leading up to the 5-year major repair and cleanup. Based on a 4%/year TVOM, what is the capitalized cost for the water treatment plant?
- A security systems company have been hired to install a system for a city's bank. The city council agreed to pay the total cost of installment plus operation and maintenance cost for the next 10 years. At the end of the 10 years, the current security system can be updated with the new version, and if the bank decides to renew the security system with the new version, they will receive a rebate (discount) of $20,000. The installation cost of the systems is $40000. The operation cost is initially $1000 and increases by $300 each year, and the maintenance cost is $1600 annually. Assuming the interest rate is 8%, what is the present value of the total costs for city council pay to the security company for the first cost and yearly operation and maintenance cost of the first 10 years?A city is evaluating the installation of a garbage incinerator on the outskirts of town. The cost of the unit is $2 million. Environmental impact studies cost $25,000 to be paid prior to construction begins. Annual costs are estimated to include: Plant operating expenses: $30,000. Environmental remediation expenses: $32,000. As a benefit of the incinerator, a cost reduction of $12 per year is estimated to be on the bill of the company's 35,000 customers. The equipment is estimated to have a lifespan of 10 years, after which the incinerator will be dismantled at a cost of $45,000. Assuming the money is raised at 4% interest, how much is the profit ratio at cost of this project? a. 1.625 b. 1.597 c. 1.634 d. 1.651 e. None of the aboveGreen County is planning to construct a bridge across the south branch of Carey Creek to facilitate traffic flow though Clouser Canyon. The first cost for the bridge will be $9,500,000. Annual maintenance and repairs the first year of operation, estimated to be $10,000, are expected to increase by $1000 each year thereafter. In addition to regular maintenance, every 5 years the roadway will be resurfaced at a cost of $750,000, and the structure must be painted every 3 years at a cost of $100,000. If Green County uses 5% as its cost of money and the bridge is expected to last for 20 years, what is the EUAC?
- A city has decided to build a sofiball complex, and the city council has already voted to fund the project at the level of $800,000 (initial capital investment). The city engineer has collected the following financial information for the complex project:• Annual upkeep costs: $120.000• Annual utility costs: $13,000• Renovation costs: $50,000 for every five years• Annual team user fees (revenues): $32,000• Useful life: Infinite• interest rate: 8%lf the city can expect 40.000 visitors to the complex each year, what should be the minimum ticket price per person so that 1he city can break even'?Waller County is planning to construct a Dam some tens of miles away from the Hempstead Recreation center to facilitate fishing in the El Manny River Basin and Power Generation. The first cost for the Dam will amount to $6,500,000. Annual maintenance and repairs will amount to $24,000 for the first four years, to $28,000 for each year in the next eight years, and to $32,000 per year for the next four years. At the end of the 16th year, $25,000 is estimated to be deposited into Waller county account as tax credits earned for its environmental compliance in the construction and operation of the Dam. In addition a major overhaul costing $650,000 will be required at the end of the seventh year. Use an interest rate of 10% and:On January 2, 2011, Blink Corporation was granted 5,000 acres of land in a village, located near the slums outside city limits, by a local government authority. The condition attached to this grant was that Blink Corporation should clean up this land and lay roads by employing laborers from the village in which the land is located. The government has fix the minimum wage payable to the workers. The entire operation will take three years and is estimated to cost P100,000,000. This amount will be spent in this way, P20,000,000 each in the first, P30,000,000 in the second years and P50,000,000 in the third year. The fair value of the land is currently P120,000,000. What portion of the grant is recognized for the year ended December 31, 2012?