A government incurred expenses for its infrastructure as follows: $20 million for general repairs; $18 million to extend the life for existing infrastructure; and $15 million for additions and betterments.The government chooses to use the modified approach to record infrastructure.The infrastructure has a basis of $400 million and would be depreciated over a 40 year life,if depreciation were charged.The amount that would be shown as expense in the Statement of Activities would be:
A) $33 million.
B) $35 million.
C) $38 million.
D) $53 million.
Correct Answer:
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