After studying this chapter, you should be able to:
LO1 Identify the various costs included in the initial cost of property, plant, and equipment, natural resources, and intangible assets.
LO2 Determine the initial cost of individual operational assets acquired as a group for a lump-sum purchase price.
LO3 Determine the initial cost of an operational asset acquired in exchange for a deferred payment contract.
LO4 Determine the initial cost of operational assets acquired in exchange for equity securities or through donation.
LO5 Calculate the fixed-asset turnover ratio used by analysts to measure how effectively managers use property, plant, and equipment.
LO6 Explain how to account for dispositions and exchanges for other nonmonetary assets.
LO7 Identify the items included in the cost of a self-constructed asset and determine the amount of capitalized interest.
LO8 Explain the difference in the accounting treatment of costs incurred to purchase intangible assets versus the costs incurred to internally develop intangible assets.
