Kindly help to calculate the depreciation value using straightline method, please in details:
on January 1, 2003 Ciclón sold their old stadium and itsassociated real estate to Miguel S.A., a real estate developmentcompany, in exchange
for a new stadium that Miguel S.A. had already built (constructionended on December 31, 2002) and a cash payment of $100million.
Miguel S.A. had acquired the land for the new stadium earlier for$7 million; the cost of constructing the stadium was an additional$20 million. The $20 million approximates the fair value of thestadium structure. Both the $100 million cash and the stadium weretransferred to Ciclón on January 1, 2003. At the time the newstadium was transferred to Ciclón, the estimated market value ofthe associated land was $12 million. The book value of Ciclónâs oldstadium and its associated real
estate was $1 million.1 As of January 1, 2003, the expected usefullife of the new stadium was 40 years. Under Spanish law the clubwould be responsible for demolishing the stadium at the end of itsuseful life. The estimated demolition cost was $5 million.
Kindly help to calculate the depreciation value using straightline method, please in details:
on January 1, 2003 Ciclón sold their old stadium and itsassociated real estate to Miguel S.A., a real estate developmentcompany, in exchange
for a new stadium that Miguel S.A. had already built (constructionended on December 31, 2002) and a cash payment of $100million.
Miguel S.A. had acquired the land for the new stadium earlier for$7 million; the cost of constructing the stadium was an additional$20 million. The $20 million approximates the fair value of thestadium structure. Both the $100 million cash and the stadium weretransferred to Ciclón on January 1, 2003. At the time the newstadium was transferred to Ciclón, the estimated market value ofthe associated land was $12 million. The book value of Ciclónâs oldstadium and its associated real
estate was $1 million.1 As of January 1, 2003, the expected usefullife of the new stadium was 40 years. Under Spanish law the clubwould be responsible for demolishing the stadium at the end of itsuseful life. The estimated demolition cost was $5 million.
