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:

Three-Dimensional Patterns

Structured arrangements or designs that have depth, height, and width, giving them a sense of volume or space.

Recessive

Referring to a gene that only influences the expression of a trait when paired with an identical gene.

Dominant

Referring to the most powerful, influential, or significant element or gene in a context or system.

Gene

A unit of heredity made up of DNA occupying a fixed position on a chromosome, which is responsible for the inherited characteristics in living organisms.