Section 1231 Property Will Generally Have All the Following Characteristics

question 79

Multiple Choice

Section 1231 property will generally have all the following characteristics except

• A)real or depreciable property.
• B)used in trade or business.
• C)held for sale to customers.
• D)held for more than one year.

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Definitions:

Recoverable Amount

The higher value between an asset's fair value minus costs to sell and its value in use, used in assessing whether an asset is impaired.

Carrying Amount

The book value of an asset or liability on a company's balance sheet, reflecting its original cost adjusted for factors such as depreciation or amortization.

Anticipated Residual

The estimated value of an asset at the end of its useful life, taking into account depreciation and wear.