95 Balmur Corus Music Metromedia CMR Broadcasting Inc. 6. CAPITAL ASSETS Effective July 20, 2000, the Company paid $3,500,000 for its 50% interest in Balmur Corus Music (“BCM”), a joint venture. BCM will focus on developing opportunities in the country music entertainment business in Canada and the United States.  Effective August 30, 2000, the Company acquired 29.9% of the outstanding shares of Belcand Mount Royal Holdings Inc., the parent holding company of Metromedia CMR Broadcasting Inc. (“Metromedia”), for $39,474,000 in cash, and entered into an agreement to acquire the remaining 70.1% for approximately $125,500,000 in cash plus the assumption of $20,000,000 in debt subject to a number of conditions, including obtaining CRTC approval. Depreciation provided in the accounts on capital assets amounted to $8,995,000 (1999 – $6,023,000; 1998 – $5,203,000). (thousands of Canadian dollars) 2000 1999 Accumulated Accumulated Cost depreciation Cost depreciation Broadcasting head-end equipment 18,324 7,837 16,937 5,908 Production equipment 24,444 10,635 16,342 5,783 Leasehold improvements 9,252 2,223 2,308 1,452 Buildings 11,249 2,607 3,195 927 Other 23,756 4,791 9,161 5,028 87,025 28,093 47,943 19,098 Land 8,469 – 1,685 – 95,494 28,093 49,628 19,098 Net book value 67,401 30,530