A city government adds streetlights within its boundaries at a total cost of $562,500. These lights should burn for at least 15 years but can last significantly longer if maintained properly. The city develops a system to monitor these lights with the goal that 97 percent will be working at any one time. During the year, the city spends $49,700 to clean and repair the lights so that they are working according to the specified conditions. The city also spends another $94,800 to construct lights for several new streets.

a. Prepare the entries assuming infrastructure assets are capitalized with depreciation recorded on government-wide financial statements.

b. Prepare the entries assuming infrastructure assets are capitalized with government using the modified approach on government-wide financial statements.