Question: How should Bling determine the initial value to assign to Peanut? What specific costs should be included in (or excluded from) this initial value and why? Support your arguments using the FASB Codification whenever possible, but you may need to use your own logic occasionally as well.

Research Case \#2 Elephant Accounting Bling-Bling Sisters' Circus ("Bling") is a public entity, based in the United States, which produces a very popular traveling circus show. Bling employs several circus performers and uses various animal acts in its shows. In 2020, one of Bling's adult elephants gave birth to a baby elephant, which the circus named "Peanut." Bling incurred various costs at the time of Peanut's birth and throughout the first two years of Peanut's life before he began performing with the circus. Some of these costs included the following: (1) veterinary bills associated with his birth, immunizations, etc. (2) costs to purchase and clear a tract of land for Peanut and the other elephants to spend their time while not on the road (3) training costs to get Peanut ready to perform in shows (4) costs to feed, bathe, and maintain Peanut's general health Because it can be rather expensive to care for an elephant, particularly during its early years, Bling took out a loan to finance the costs associated with Peanut's upbringing until he could begin performing and making Bling some "bling" (\$\$). Therefore, Bling also incurred interest costs associated with the loan used to pay for Peanut's care and training during the first two years of his life. Finally, in 2022, Peanut debuted in his first performance to a sold-out crowd! He continued to perform to rave reviews for several years thereafter. Although Peanut proved himself very profitable, Bling still incurred various costs associated with the elephant, including: (1) costs for food (2) veterinary bills (3) grooming (4) Bling also had to pay trainers to teach Peanut new tricks, so he would continue to lure in big crowds