Expenditures for infrastructure

Reference no: EM13138733

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 of the above

D. Neither of the above

Reference no: EM13138733

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