Indicate Whether Each of the Following Assets Are Capital Assets

question 1791

Essay

Indicate whether each of the following assets are capital assets, Sec. 1231 assets, or ordinary income property (pr 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 purpo
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 automobi 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 build
f. Yvonne owns a computer for use in her job as a sales representative. She does not use the computer for perso purposes. How is the computer classified for tax purposes?

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Definitions:

OSHA

The Occupational Safety and Health Administration, a U.S. government agency responsible for ensuring safe and healthy working conditions.

Safe Working Standards

Refers to the policies, procedures, and regulations set in place to ensure the health and safety of employees in the workplace.

Enforcement Powers

The authority granted to certain organizations or bodies to ensure compliance with laws and regulations, often through the ability to impose penalties.

Corporate Criminal Liability

The legal principle that a corporation can be held accountable and sanctioned for criminal acts committed by its directors, officers, or employees.