Consider the following questions:
1. When an item of property, plant, and equipment is disposed of, how is gain or loss on disposal computed?
2. What is the basic principle for valuing property, plant, and equipment and intangible assets acquired in exchange for other nonmonetary assets?
3. Identify the two exceptions to valuing property, plant, and equipment and intangible assets acquired in nonmonetary exchanges at the fair value of the asset(s) given up.