The village of the Canandaigua determines that, as of July 1, 2013, infrastructure assets estimated at $300 million were in place, with an estimated useful life of 25 years. During the years ended June 30, 2014, expenditures were $7 million for the routine maintenance of infrastructure, $3 million to extend the life of existing infrastructure, and $ 12 million for infrastructure addition and improvements.

(a). If the modified approach is used, what would be the amount changed to expense during the final year ended June 30, 2014. 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?

Answer rating: 100% (QA)

a If modified approach is used The amount to be charged ... View the full answer