For Livestock to Be Considered Section 1231 Property

question 100

Multiple Choice

For livestock to be considered Section 1231 property,

• A)the livestock must be held for draft,breeding or dairy purposes,but not for sport.
• B)cattle and horses must be held for at least 12 months from the date of acquisition.
• C)cattle and horses must be held for at least 24 months from the date of acquisition.
• D)livestock other than cattle and horses must be held for at least 24 months from the date of acquisition.

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Definitions:

Sale

A transaction between two parties where the ownership of goods, services, or assets is transferred from the seller to the buyer for an agreed amount of money or value.

Journal Entry

A record in the books of accounts that represents a business transaction and its effects on the company's finances.

Journal Entry

A record in accounting that represents a transaction and its effect on various accounts, used to transfer amounts from one account to another.

Profit and Loss Ratio

A financial metric that measures a company's profitability by comparing its profits and losses over a specific period.