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.

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter6: Business Expenses
Section: Chapter Questions
Problem 78IIP
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A city government adds streetlights within its boundaries at a total cost of $316, 000. These lights should burn for at least 8 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 $54, 600 to clean and repair the lights so that they are
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.
Transcribed Image Text:A city government adds streetlights within its boundaries at a total cost of $316, 000. These lights should burn for at least 8 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 $54, 600 to clean and repair the lights so that they are 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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