BU127 Lecture 9: Chapter 9
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Copyrights: mineral deposits and timber, definite life, goodwill. This ratio measures a company"s ability to generate sales given an investment in fixed assets. During 2012, westjet airlines had ,427,409 of revenue. End-of-year fixed assets were ,985,599 and beginning-of-year fixed assets were. Measuring and recording acquisition cost: acquisition cost includes the purchase price and all expenditures needed to prepare the asset for its intended use, acquisition cost does not include financing charges and cash discounts. Purchase price: buildings, renovation and repair costs. Title insurance premiums: delinquent taxes, surveying fees. On january 1, westjet airlines purchased aircraft for ,000,000 cash. Record at the current market value of the consideration given, or the current market value of the asset acquired, whichever is more clearly evident. On july 7, westjet gave boeing 1,000,000 common shares with a market value of per share plus ,000,000 in cash for aircraft.
