Final answer:
Long-term tangible assets are large, physical items used in business for an extended time, such as equipment, buildings, and land. Goods like collectibles can also be considered long-term tangible assets, but goodwill is intangible and not included in this category. All the given options are correct except option c.
Step-by-step explanation:
Long-term tangible assets include items that a person or a company buys and may sell at another time. These are typically large, physical items that are expected to be used by a business over an extended period of time. Among the long-term tangible assets listed in the question:
- Equipment: This is a durable good that a business uses to perform its operations. It has a life expectancy of more than one year, making it a long-term asset.
- Buildings: As part of real estate or the category of structures, buildings are long-term assets used for business operations or investment purposes. Structures like office buildings, shopping malls, and factories fall into this category.
- Land: This is an asset that does not depreciate and can be used for various purposes, including the construction of buildings or as an investment.
- Patents: Though patents are not strictly 'tangible' because they represent an intangible right, they are often included in long-term asset considerations as they grant exclusive rights over a certain period.
Goods like collectibles including paintings, fine wine, and jewelry can also be considered long-term tangible assets, although they may not generate a higher-than-average rate of return over a sustained period. The term goodwill does not belong in this category as it represents an intangible asset.