by Brian Leakey | Jul 12, 2023 | finance
Why do organizations, government included, not capitalize all assets that last for more than one budgeting period, despite knowing that doing so would increase the accuracy of the accounting of assets and operations?
by Brian Leakey | Jul 12, 2023 | finance
What are the differences in how depreciation is treated by government and by companies in the private sector?
by Brian Leakey | Jul 12, 2023 | finance
A city government purchases a new garbage truck for $120,000 this year. It is estimated that the truck will have a residual value of $20,000 and a useful economic life of 20 years. What would be the depreciation expense each year if the straight-line method were...
by Brian Leakey | Jul 12, 2023 | finance
What is life cycle costing (LCC)? What are the main issues in applying LCC in the government context? The city administration is considering refurbishing the lighting system of its administration building. After an initial investigation, the city procurement office...
by Brian Leakey | Jul 12, 2023 | finance
This assignment extends the garbage truck problem from prompt 2. Two other lenders provide alternative scenarios. Alternate lender 1 suggests that the inflation rate will be 4% and offers an interest rate of 7.5%, while alternate lender 2 suggests that the inflation...
by Brian Leakey | Jul 12, 2023 | finance
A city has learned that by buying larger garbage trucks, it could reduce labor costs for garbage removal. Note: All the dollar amounts below are in this year’s dollars (constant dollars).a. Cost of the trucks today is $400,000.b. Annual savings in this year’s constant...
