Indicate Whether Each of the Following Assets Are Capital Assets,Sec

question 91

Essay

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

---

Definitions:

Drug Therapy

The use of pharmaceutical drugs to treat or manage medical conditions, often involving specific medications for targeted symptoms or disease processes.

Binge Eating

The consumption of large quantities of food in a short period of time, accompanied by a sense of loss of control over eating.

Selective Serotonin Reuptake Inhibitors (SSRIs)

Class of antidepressant drugs.

Fluoxetine

A medication primarily used to treat depression, obsessive-compulsive disorder, and several other conditions, functioning as a selective serotonin reuptake inhibitor (SSRI).