Southern Coatings, Inc. spent $250,000 cash in fiscal 2016 on research and development activities, paying for work done in 2016 by research personnel (chemists and engineers) discovering and developing improvements to some of their products. Under current accounting standards, what will be the effect of this $250,000 expenditure on Southern's 2016 financial statements? 1) Assets go down (cash) and assets go up (goodwill). 2) Assets go down (cash) and equity goes down (retained earnings). 3) Assets go down (cash) and liabilities go down (salaries payable). 4) Assets go down (cash) and assets go up (completed R&D asset) 5) None of these answers is correct. Holder, Inc. began 2016 with $4,500 in utilities payable. During 2016, Holder incurred $30,000 in new utilities charges. During 2016, Holder paid $20,000 cash for utilities. Provide the name of the account that Holder's December 31, 2016 balance sheet would show for utilities and provide the amount that Holder's balance sheet would show for that account