Central City constructed its Fourth Avenue bridge in $1997,$ but maintained no

records supporting the cost of the bridge. The city$$s engineers estimate that the

current replacement cost of the bridge is $$30$ million. The current construction

price index is $200,$ but was $150$ in $1997$ when the bridge was built. The city$$s

engineers also estimate that the bridge has a total useful life of $40$ years. Since

the city$$s CPAs are conducting the FY $2023/24$ annual financial statement audit,

they have

asked you, the city$$s Accounting Manager, the following questions........

a$.$ What values should the city assign to the bridge for estimated historical cost and

accumulated depreciation?

b$.$ As a possible alternative, what value would the city assign to the bridge if it

decided to use the modified approach to report its bridges?

c$.$ In order to decide which way to go$,$ do you believe that having depreciation

charged for the bridge adds significant information to the city$$s financial

statements? Why or why not?