ADVANCED ACCOUNTING(LL) W/CONNECT
13th Edition
ISBN: 9781260282382
Author: Hoyle
Publisher: MCG
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Textbook Question
Chapter 17, Problem 15P
A city builds sidewalks throughout its various neighborhoods at a cost of $2.1 million. Which of the following is not true?
- a. Because the sidewalks qualify as infrastructure, the asset is viewed in the same way as land so that no
depreciation is recorded. - b. Depreciation is required unless the modified approach is utilized.
- c. The modified approach recognizes maintenance expense in lieu of depreciation expense for qualifying infrastructure assets.
- d. The modified approach is allowed only if the city maintains the network of sidewalks at least at a predetermined condition.
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Students have asked these similar questions
All of the following are true about the modified approach to infrastructure depreciation except:
O If specific guidelines are met, a government can choose to expense all maintenance costs each year in lieu
depreciation.
The modified approach specifically excludes infrastructure assets within a network or subsystem of a netw
O If specific guidelines are met, additions and improvements must be capitalized.
For eligible assets, the government must establish a minimum acceptable condition level.
O The government must have an asset management system in place to monitor the eligible assets.
Question 18
The city operates a public swimming pool where each person is assessed a $2 entrance fee. Which
statement is most appropriate to report these revenues?
Indicate whether each of the following expenditures should be classified as land, land improvements, buildings, equipment, or none of
these.
1.
2.
Parking lots
Electricity used by a machine
3.
Excavation costs
4.
Interest on building construction loan
5.
Cost of trial runs for machinery
6.
Drainage costs
7.
Cost to install a machine
8.
Fences
9.
Unpaid (past) property taxes assumed
10.
Cost of tearing down a building when land and a building on it are purchased
1. What is the accounting difference between using the modified approach for infrastructure assets and depreciating infrastructure assets? Under the modified approach, what happens if infrastructure assets are not maintained at or above the established condition level?
2. What is a special assessment? How does funding for a special assessment capital improvement differ from other capital improvements in a local government?
Chapter 17 Solutions
ADVANCED ACCOUNTING(LL) W/CONNECT
Ch. 17 - Prob. 1QCh. 17 - Prob. 2QCh. 17 - Prob. 3QCh. 17 - Prob. 4QCh. 17 - A landfill is scheduled to be filled to capacity...Ch. 17 - The City of VanStone operates a solid waste...Ch. 17 - Prob. 7QCh. 17 - Prob. 8QCh. 17 - Prob. 9QCh. 17 - Prob. 10Q
Ch. 17 - Prob. 11QCh. 17 - Prob. 12QCh. 17 - Prob. 13QCh. 17 - What does a comprehensive annual financial report...Ch. 17 - Prob. 15QCh. 17 - Prob. 16QCh. 17 - What is the difference between a blended component...Ch. 17 - Prob. 18QCh. 17 - Prob. 19QCh. 17 - Prob. 20QCh. 17 - Prob. 21QCh. 17 - How are internal service funds reported on...Ch. 17 - Prob. 23QCh. 17 - A general purpose government takes over a special...Ch. 17 - Prob. 25QCh. 17 - Prob. 26QCh. 17 - Prob. 1PCh. 17 - Prob. 2PCh. 17 - Prob. 3PCh. 17 - A city agrees to allow the Jones Company to...Ch. 17 - Prob. 5PCh. 17 - A city creates a solid waste landfill. It assesses...Ch. 17 - Prob. 7PCh. 17 - If this landfill is judged to be a proprietary...Ch. 17 - If this landfill is judged to be a governmental...Ch. 17 - The City of Nomanchester has a defined benefit...Ch. 17 - Prob. 11PCh. 17 - Prob. 12PCh. 17 - Prob. 13PCh. 17 - Prob. 14PCh. 17 - A city builds sidewalks throughout its various...Ch. 17 - Prob. 16PCh. 17 - Prob. 17PCh. 17 - Prob. 18PCh. 17 - Prob. 19PCh. 17 - Prob. 20PCh. 17 - Prob. 21PCh. 17 - Prob. 22PCh. 17 - Prob. 23PCh. 17 - Prob. 24PCh. 17 - Prob. 25PCh. 17 - Prob. 26PCh. 17 - On January 1, 2017, the City of Hastings created a...Ch. 17 - Prob. 28PCh. 17 - Prob. 29PCh. 17 - Prob. 30PCh. 17 - Prob. 31PCh. 17 - Prob. 32PCh. 17 - The City of Francois, Texas, has begun the process...Ch. 17 - The County of Maxnell decides to create a...Ch. 17 - The following information pertains to the City of...Ch. 17 - Prob. 36PCh. 17 - Prob. 37PCh. 17 - Prob. 38PCh. 17 - For each of the following, indicate whether the...Ch. 17 - For problems 40 through 43, use the following...Ch. 17 - Prob. 41PCh. 17 - Prob. 42PCh. 17 - On the first day of the year, the City of Wolfe...Ch. 17 - A city has a solid waste landfill that was filled...Ch. 17 - Use the same information as in problem 44 except...Ch. 17 - Prob. 46PCh. 17 - Prob. 47PCh. 17 - Prob. 48PCh. 17 - Prob. 2DYSCh. 17 - Read the following journal article: 25 Years of...Ch. 17 - Prob. 4DYSCh. 17 - Prob. 5DYSCh. 17 - The City of Larissa recently opened a solid waste...
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