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

question 38

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 purchases 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?

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Definitions:

Personal Space

Personal space refers to the physical area surrounding an individual that is considered personal and inviolable, the comfort zone for social interactions.

Leans Forward

Adopting a bodily posture where the upper body moves in front of the base of support, often indicating attention or eagerness.

Turns Head

Refers to the motion of rotating one's head around the vertical axis, usually to change the direction of gaze.

Steps Closer

Actions or events that bring one nearer to a goal or outcome.