Which of the Following Assets Is 1231 Property

question 63

Multiple Choice

Which of the following assets is 1231 property?

• A)a machine used in the company's manufacturing operations
• B)an investment in corporate stock
• C)land held for investment
• D)items held for resale by a retailer

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Definitions:

Operating Lease

A contract that allows for the use of an asset but does not convey rights of ownership of the asset.

Assets And Liabilities

Represent the resources a company owns or controls (assets) and the obligations it owes to outsiders (liabilities).

Operating Lease

A lease agreement for the use of an asset where the lessor remains the owner, and the lessee does not record the asset on its balance sheet.

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life to account for declines in value over time.