Question

Which of the following costs will not be included in the cost of fixed assets on the government-wide financial statements?

a. Purchase price (invoice amount).
b. Cost of demolishing existing structures that cannot be used.
c. Interest on self-constructed items.
d. Engineering costs.

Answer 1

The cost of fixed assets on the government-wide financial statements does not include the cost of demolishing existing structures that cannot be used and the interest on self-constructed items.

Step-by-step explanation:

The cost of fixed assets on the government-wide financial statements does not include the following costs:

1. Purchase price (invoice amount): The purchase price of fixed assets is included in the cost of fixed assets on the government-wide financial statements.
2. Cost of demolishing existing structures that cannot be used: The cost of demolishing existing structures that cannot be used is not included in the cost of fixed assets.
3. Interest on self-constructed items: The interest on self-constructed items is not included in the cost of fixed assets.
4. Engineering costs: The engineering costs are included in the cost of fixed assets on the government-wide financial statements.