1.In 2012 Bantham County incurred $80 million in costs to construct a new highway. Engineers estimate that the useful life of the highway is 20 years. Prepare the entry that the county should make to record annual depreciation (straight-lline method) to facilitate preparation of its government-wide statements.
2. What reservations might you have as to the engineers' estimate of useful life? Why might any estimate of a highway's useful life be suspect?
3. In 2013 the engineers determined that the county would have to incur $1 million in resurfacing costs every four years to preserve tdhe highway in the same condition as it was when the road was completed. In 2013 the county spent $1 million to resurface the highway. Prepare the entries, including that for firt year depreciation, that the county should make.