Which of the Following Does Not Ultimately Result in a Capital

question 1

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 these.

---

Definitions:

Physical Properties

Characteristics of a material or object that can be observed or measured without changing its composition, such as density, color, or melting point.

Sound Waves

Oscillations of air pressure that travel through the air or another medium and can be heard when they reach a person's or animal's ear.

Auditory Perception

The process by which the brain interprets and makes sense of sound signals received from the ears.