Question

The balances of select accounts of Stephanie, Inc. as of December 31, 2016 are given below.

Building $100,000
Cash 8,000
Office Supplies 800
Furniture 6,000
Prepaid Insurance 500
Accumulated Depreciation--Furniture $4,000
Land 35,000
Accumulated Depreciation--Building 4,700
Accounts Receivable 4,000

What amount of total long-term assets would be shown on the balance sheet?
A. $132,300
B. $135,000
C. $130,300
D. $139,000
E. None of the above

Answer 1

The total long-term assets for Stephanie, Inc. are calculated by adding the net values of the Building, Furniture, and value of Land, which sum up to $132,300. The correct answer is A. $132,300.

Step-by-step explanation:

To calculate the amount of total long-term assets to be shown on the balance sheet for Stephanie, Inc., one must sum the book values of all long-term assets, which typically include investments in land, buildings, and equipment, minus any accumulated depreciation on those assets. Long-term assets in this case include:

• Building ($100,000)
• Accumulated Depreciation--Building (-$4,700)
• Furniture ($6,000)
• Accumulated Depreciation--Furniture (-$4,000)
• Land ($35,000)

These figures equate to a net amount for the Building of $95,300 ($100,000 - $4,700), a net amount for Furniture of $2,000 ($6,000 - $4,000), and the value for Land remains unchanged as it is not depreciated. Hence, the total long-term assets will be the sum of these:

$95,300 + $2,000 + $35,000 = $132,300

Therefore, the correct answer is A. $132,300.