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

Question 1

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A government incurred expenditures for its infrastructure as follows: $20 million for general repairs; $21 million to extend the life of existing infrastructure; $22 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 $43 million.
B) If the government chose not to use the modified approach to record infrastructure, the amount to be charged to expense would be $41 million.
C) Both A andB
D) None of the above.

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