Final answer:
The original cost of PPE and intangible assets acquired in an exchange transaction includes the purchase price and directly attributable costs.
Step-by-step explanation:
The original cost of PPE (Property, Plant, and Equipment) and intangible assets acquired in an exchange transaction includes the purchase price of the assets and any directly attributable costs.
For example, if a company acquires a building and land in an exchange transaction, the original cost would include the agreed-upon value of the building and land, as well as any costs directly related to the acquisition such as legal fees or transportation costs.
It's important to note that the original cost does not include any subsequent costs incurred for maintenance, repairs, or enhancements to the assets.