Indicate Whether Each of the Following Assets Are Capital Assets,Sec

question 91

Essay

Indicate whether each of the following assets are capital assets,Sec.1231 assets,or ordinary income property (property which,if sold,results in ordinary income).Assume that all of the property is held for more than one year.
a.XYZ Corporation owns land used as an employee parking lot.How is the parking lot classified for tax purposes?
b.Montana Corporation owns land held as an investment.How is the land classified for tax purposes?
c.John,a self-employed electrician,owns an automobile he uses strictly for personal use.How is the automobile classified for tax purposes?
d.Jan,a self-employed contractor,owns a truck she uses exclusively in her trade or business.How is the truck classified for tax purposes?
e.Leslie owns an office building where her accounting practice is located.What is the classification of the building?
f.Yvonne owns a computer for use in her job as a sales representative.She does not use the computer for personal purposes.How is the computer classified for tax purposes?

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Definitions:

Positive Outcomes

Favorable results or benefits stemming from a particular course of action or condition.

Noxious

Harmful, poisonous, or very unpleasant.

Unwanted Stimulus

Any external event or situation that is not desired or is considered unpleasant by an individual, potentially leading to stress or discomfort.

Loud Stimulus

A sound or noise of high decibel level that triggers a sensory response.