What costs are included in a long term asset account when the asset is purchased? What costs are not included in the asset account but rather are expensed on the Income Statement? Be able to calculate depreciation expenses using the straight line method. What is the effect on the financial statements of recoding the depreciation expense? Be able to calculate the Book Value of an asset What is Goodwill? When do we recognize Goodwill on the financial statements? Installment Notes Payable - be able to record the issuance of the note; be able to determine the amount of each payment that represents interest expense and repayment of principal; be able to record the journal entry for the annual payment of interest and principal; be able to say what amount will be recoded on the financial statements for the note payable at the end of each period. Be able to record the issuance of Bonds Payable at a discount and the recoding of Interest Expense (using the Straight Line method of Bond Discount amortization) Understand the relationship between market interest rate and stated interest rate (and whether the bond will be issued at a premium, at face value, or at a discount)