Match the Following Independent Descriptions as Hot I

question 122

Multiple Choice

Match the following independent descriptions as hot i.e., ordinary income-producing) or nonhot assets with the following statements.
-Inventory with a basis of $10,000 and a fair market value of $10,500.

• A)Hot assets for purposes of distributions, liquidation of a partnership interest under § 736, and sale of a partnership interest.
• B)May be a hot asset for some but not all the purposes stated in a).
• C)Not a hot asset.

---

Definitions:

Manufacturer

A company or entity that produces finished goods from raw materials through the use of equipment and processes.

Word

In computing, a fixed-sized piece of data handled as a unit by the instruction set or the hardware of the processor.

Register

A small, fast storage location within a computer's CPU used to hold data and instructions that are currently being processed.

File

A collection of data stored in one unit, identified by a filename; can represent documents, programs, or other collections of information.