Acity government adds street lights within its boundaries at a total cost of $227,500. the lights should burn for at least 7 years but can last significantly longer if maintained properly. the city sets up 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 $52,800 to clean and repair the lights so that they are working according to the specified conditions. however, it spends another $83,000 to construct lights for several new streets in the city. prepare the entries assuming infrastructure assets are capitalized with depreciation recorded. prepare the entries assuming infrastructure assets capitalized with government using the modified approach.

Exercise 18-15 sheffield appliance center is an experienced home appliance dealer. sheffield appliance center also offers a number of services for the home appliances that it sells. assume that sheffield appliance center sells ovens on a standalone basis. sheffield appliance center also sells installation services and maintenance services for ovens. however, sheffield appliance center does not offer installation or maintenance services to customers who buy ovens from other vendors. pricing for ovens is as follows. oven only $790 oven with installation service 850 oven with maintenance services 970 oven with installation and maintenance services 990 in each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $180. additionally, the incremental amount charged by sheffield appliance center for installation approximates the amount charged by independent third parties. ovens are sold subject to a general right of return. if a customer purchases an oven with installation and/or maintenance services, in the event sheffield appliance center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $790. assume that a customer purchases an oven with both installation and maintenance services for $990. (b) indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract.