A Government Incurred Expenditures for Its Infrastructure as Follows: $20

question 108

Multiple Choice

A government incurred expenditures for its infrastructure as follows: $20 million for general repairs; $22 million to extend the life of existing infrastructure; $21 million for improvements and additions. If depreciation is to be charged, the amount would be $23 million. Which of the following would be true?

• A) If the government chose to use the modified approach to record infrastructure, the amount to be charged as expense would be $42 million.
• B) If the government chose not to use the modified approach to record infrastructure, the amount to be charged to expense would be $43 million.
• C) Both A and B.
• D) None of the above.

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