Please explain:

*Why the correct answer is correct.

*Why the other ones are incorrect or not the best answer.

1) Fixed assets are ordinarily presented on the balance sheet ________.

a) at their current market value

b) at their replacement cost

*c) at their cost less accumulated depreciation

d) under intangible assets

2) Rico Inc. issues a 90-day, 4%, $3,000 note on account. This transaction _____.

a) increases net assets and earnings per share of the company

b) decreases net assets and increases earnings per share of the company

*c) has no effect on net assets and earnings per share of the company

d) decreases net assets and earnings per share of the company