Glen Valley City has properly adopted the modified approach to account for its infrastructure assets. Which of the following statements is correct about

accounting for these assets on the governmentwide statement of activities?

I. Depreciation expense should be computed based on the assets’ estimated useful lives and reported under the Governmental Activities column of the city’s

statement of activities.

II. The amount of the expenditures made for the infrastructure assets except for additions and improvements should be expensed in the period incurred.

a. I only.

b. II only.

c. I and II.

d. Neither I nor II.