Which of the Following Items Is a Capital Asset in the Hands

question 83

Multiple Choice

Which of the following items is a capital asset in the hands of the taxpayer?

• A)Taxpayer owns a 10-year old Harley-Davidson motorcycle.
• B)Taxpayer owns a used car lot. He owns a 1962 Cadillac that is for sale on the lot.
• C)Taxpayer owns a notebook computer that he carries to his clients for work purposes.
• D)Taxpayer, a farmer, has a prize winning steer in his herd.
• E)None of the above items are capital assets.

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Definitions:

Virginia Colonists

Early European settlers in the Colony of Virginia, who established Jamestown in 1607 as the first permanent English settlement in what would become the United States.

Large Land Grants

Significant parcels of land awarded by governments or monarchs to individuals, institutions, or companies, often to promote settlement, agriculture, or development.

Carolina

Originally a British colony in North America, divided into North Carolina and South Carolina in 1712.

Barbadians

People from Barbados, an island country in the Caribbean region, known for its rich history, culture, and significant contribution to the transatlantic slave trade.