Final answer:
Interest on self-constructed items is typically not included in the cost of fixed assets on the government-wide financial statements, while purchase price, demolition costs, and engineering costs usually are. The correct answer is option: interest on self-constructed items.
Step-by-step explanation:
Among the options given, interest on self-constructed items generally will not be included in the cost of fixed assets on the government-wide financial statements. This is because only the costs that are directly attributable to bringing the asset to the location and condition for its intended use are usually capitalized as part of the asset's cost.
These costs typically include the purchase price (invoice amount), cost of demolishing existing structures that cannot be used, and engineering costs associated with the construction of the asset.
However, interest on debt during the construction phase of a self-constructed asset is often expensed as incurred under most accounting frameworks, although some permits capitalization under specific conditions.