The Balances of Select Accounts of Donovan Company as of December

question 46

Multiple Choice

The balances of select accounts of Donovan Company as of December 31,2018 are given below. $$\begin{array} { | l | r | r | } \hline & { \text { Debit } } & \text { Credit } \\\hline \text { Building } & \$ 130,000 & \\\hline \text { Cash } & 9,000 & \\\hline \text { Office Supplies } & 800 & \\\hline \text { Furniture } & 6,000 & \\\hline \text { Prepaid Insurance } & 450 & \\\hline \text { Accumulated Depreciation-Furniture } & & \$ 3,000 \\\hline \text { Land } & 30,000 & \\\hline \text { Accumulated Depreciation-Building } & & 4,300 \\\hline \text { Accounts Receivable } & 3,000 & \\\hline\end{array}$$ What amount of total long-term assets would be shown on the balance sheet at December 31,2018?

• A) $130,000
• B) $158,700
• C) $160,000
• D) $166,000

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of individuals increases, inversely related to income levels.

Substitutes

Goods or services that can be used in place of each other, where an increase in the price of one leads to an increase in the demand for the other.

Demand Curve

A visual chart that illustrates the connection between the cost of an item and the amount consumers are willing to buy at those costs.

Demand Curve

A chart that illustrates how the quantity of a product that consumers are ready to buy varies with its price.