Conceptual objectives:

1. Explain the cost principle for computing the cost of plant assets.
2. Explain depreciation for partial years and changes in estimates.
3. Distinguish between revenue and capital expenditures, and account for them.

Analytical objectives:

1. Compute total asset turnover and apply it to analyze a company’s use of assets.

Procedural objectives:

1. Compute and record depreciation using the straight-line, units-of-production, and declining-balance methods.
2. Account for asset disposal through discarding or selling an asset.
3. Account for natural resource assets and their depletion.
4. Account for intangible assets.
5. Appendix 8A—Account for asset exchanges.