Section 1231 Property Will Generally Have All the Following Characteristics

question 79

Multiple Choice

Section 1231 property will generally have all the following characteristics except

• A)real or depreciable property.
• B)used in trade or business.
• C)held for sale to customers.
• D)held for more than one year.

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Definitions:

Treasury Bills

Represent short-term government securities issued at a discount from the par value and mature without interest payments.

Collection Time

The typical period it takes for a company to receive payments due from its clients.

Lockbox System

A service provided by banks to companies for the collection of payments from customers, involving the use of a special address (PO Box) where customers send their payments.

Treasury Bills

Short-term U.S. government debt obligations with a maturity of one year or less, considered a safe and liquid investment.