Depreciation and Income Statement Essay

1026 Words Jun 8th, 2012 5 Pages
Ciclon de alicante
How to win outside the soccesfield
The absolute goal of Ciclón de Alicante is to become a major soccer club in Spain.

But how?
The stadium
• Q: What is the impact of the sale of the stadium transaction on Ciclón’s 2003 Income Statement and Statement of Cash Flows (under the Indirect Method), and on its Balance Sheet for the year ended on December 31th, 2003? Items to be addressed cash payment of $ 100 million cost of building the new stadium was $ 20 million market value of the land was $ 12 million the book value of the old stadium was $ 1 million useful live of the stadium was 40 years demolition cost at end useful live estimated $ 5 million (I take it as estimated $ 5 mio in 2043).
Sale of old stadium
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Balance Sheet 2003
(at December 31, thousands) Assets Cash PV

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