Which of the Following Is a Capital Asset

question 58

Multiple Choice

Which of the following is a capital asset?

• A)A camera used in a trade or business
• B)A computer held for sale to customers
• C)A taxpayer's principal residence
• D)An account receivable from a client of an attorney

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Definitions:

Capital Balances

The amount of money that owners have invested in a company plus any retained earnings or minus any losses.

Net Income

Net Income is the profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Profit And Loss Ratio

An agreed upon ratio used to divide earnings or losses of a partnership.

Salary Allowances

Portions of an individual's salary that are non-taxed, typically for specific purposes like travel or housing.