Which of the Following Is the Best Example of the Ownership

question 26

Multiple Choice

Which of the following is the best example of the ownership of the resource called land

• A)John Smith's ownership of 10 shares of a manufacturer of farm tractors
• B)Pogo O'Reilly's ownership of 10 shares of a natural gas extraction company
• C)Helen Restock's ownership of a $10, 000 savings bond
• D)Abe Hawthorne's college degree in marketing
• E)Ann Stump's creative, risk-taking personality

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Definitions:

Short-term Capital Loss

A loss realized from the sale or exchange of a capital asset held for one year or less.

Long-term Capital Gain

Profit from the sale of an asset held for more than one year, typically taxed at a lower rate than regular income.

Section 1245

A section of the tax code that involves recapturing depreciation on certain types of property as ordinary income upon sale.

Section 1231 Gain

A gain from the sale or exchange of property used in a business, subject to favorable tax treatment under Section 1231 of the U.S. tax code.