A government incurred expenses for its infrastructure as follows: $25 million for general repairs; $20 million to extend the life for existing infrastructure; and $22 million for additions and betterments. The infrastructure has a basis of $400 million and would be depreciated over a 40 year life, if depreciation were charged. The government chooses to use the modified approach to record infrastructure. The total amount that would be shown as expense in the Statement of Activities would be:

Question

Quizplus · Accepted Answer

$20,000,000 additions and betterments + $25,000,000 to extend the life of existing infrastructure = $45,000,000

A Government Incurred Expenses for Its Infrastructure as Follows: $25