EXCEL CASE The City of Loveland previously adopted GASB Statement 34. Now city officials are attempting to determine reported values for major infrastructure assets that it had obtained prior to the implementation ofthe statement. The chief concern is determining a value for the city’s hundreds of miles of roads that were built at various times over the past 20 years. Each road is assumed to last for 50 years (depreciation is 2 percent per year).

As of December 31, 2008, city engineers believed that one mile ofnew road would cost $2.3 million. For convenience, each road is assumed to have been acquired as of January 1 of the year in which it was put into operation. Officials have done some investigation and believe that the cost of a mile of road has increased by 8 percent each year over the past 20 years.

Required Build a spreadsheet to determine what value should now be reported for each mile of road depending on the year it was put in operation. For example, what reported value should be disclosed in the government¬ wide financial statements for 10 miles of roads put into operation on January 1,2001?