Which of the following would be classified as a long$-$term operational asset?

A$.$ Accounts receivable.

B$.$ Treasury stock.

C$.$ Inventory.

D$.$ Goodwill.

On January $6,2008,$ the $El$ Gato Corporation purchased a tract of land for a factory site for $$500,000.$ An existing building on the site was demolished and the new factory was completed on October $11,2008.$ Additional cost data are shown below:

Which of the following correctly states the capitalized cost of the $($a$)$ land and $($b$)$ the new building?

A$.$ $$501,\frac{500}{\text{\$}}863,700$

B$.$ $$508,\frac{200}{\text{\$}}857,000$

C$.$ $$556,\frac{200}{\text{\$}}800,000$

D$.$ $$555,\frac{700}{\text{\$}}809,000$

Mobley Company purchased an asset with a list price of $$35,000$ and received a $2\%$ cash discount on the purchase. The asset was delivered under terms FOB shipping point, and freight costs amounted to $$700.$ Mobley paid $$800$ to have the asset installed. Insurance costs to protect the asset from fire and theft amounted to $$400$ for the first year of operations. Based on this information, the amount of cost recorded in the asset account would be:

A$.$ $$36,500.$

B$.$ $$36,900.$

C$.$ $$35,000.$

D$.$ $$35,800.$

Which of the following is considered an accelerated depreciation method?

A$.$ Straight line

B$.$ Units of production

C$.$ LIFO

D$.$ Double declining balance

Which method of depreciation is used by most $U.$ S$.$ companies for financial reporting purposes?

A$.$ Straight line

B$.$ Units of production

C$.$ Double declining balance

D$.$ MACRS

At the end of the current accounting period, Rodgers Co$.$ recorded depreciation of $$25,000$ on its equipment. The effect of this entry on the company's balance sheet is to:

A$.$ decrease assets and increase liabilities.

B$.$ decrease owners' equity and increase liabilities.

C$.$ decrease assets and increase owners' equity.

D$.$ decrease owners' equity and decrease assets.