Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 29

A city government adds street lights within its boundaries at a total cost of $300,000.The lights should burn for at least 10 years but can last significantly longer if maintained properly.The city sets up 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 $48,000 to clean and repair the lights so that they are working according to the specified conditions.However, it spends another $78,000 to construct lights for several new streets in the city.
Describe the various ways these costs could be reported on government-wide statements.