Which of the Following Does NOT Ultimately Result in a Capital

question 100

Multiple Choice

Which of the following does NOT ultimately result in a capital gain or loss?

• A) Sale of a personal use asset.
• B) Sale of inventory.
• C) Gain on equipment used in a trade or business held for more than one year, if it is the only asset sale during the year.
• D) Sale of capital stock in another company.
• E) None of the choices are correct.

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Definitions:

Distributorship

A business arrangement in which one company grants another company or individual the right to sell its goods or products within a specified territory or market.

Annual Net Cash

The total amount of cash that a business generates and uses over a one-year period, after all expenditures are accounted for.

After-Tax Discount Rate

The rate used to discount future cash flows after taxes in investment analysis to find their present value.

Incremental Sales

The additional revenue generated from a particular business action or decision, beyond what would have been generated without it.