The Village of Canandaigua Determined That,as of July 1,2014,infrastructure Assets

question 100

Essay

The Village of Canandaigua determined that,as of July 1,2014,infrastructure assets estimated at $375 million were in place,with an estimated useful life of 25 years. During the year ended June 30,2015,expenditures were $9 million for the routine maintenance of infrastructure,$3 million to extend the life of existing infrastructure,and $15 million for infrastructure additions and improvements.
Required:
a)If the modified approach is used,what would be the amount charged to expense during the fiscal year ended June 30,2015. What amount would be capitalized?
b)What amount would have been charged to expense if the modified approach were not used?
What amount would be capitalized?

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Definitions:

5-Star Service Rating

A rating system used to evaluate the exceptional quality of service provided by businesses.

Waiter

A person who takes orders and serves food and beverages to guests in a dining establishment.

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An evaluation of an employee's work performance over a specific period of time.

Appreciation

The recognition and valuing of the qualities or achievements of someone or something, often leading to a positive emotional response.