Which of the Following Properties That Was Sold During January

question 91

Multiple Choice

Which of the following properties that was sold during January 2018 is Section 1231 property for Baylan Toy Manufacturing Corporation?
I.Automobile purchased in 2014.
II.Land used in the business since 2015.
III.Factory building purchased and placed into service in May 2017.
IV.Office building purchased and placed into service in June 2014.
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• A)Only statement I is correct.
• B)Statements I, II, and IV are correct.
• C)Statements III and IV are correct.
• D)Statements II and III are correct.
• E)Statements I, II, III, and IV are correct.

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Definitions:

Credit Sales

Sales for which payment is not received at the time of purchase, allowing customers to pay at a later date, thereby creating receivables for the seller.

Cash Sales

Transactions where payment is made in cash at the time of purchase, without the extension of credit.

Inventory

The goods and materials that a business holds for the ultimate purpose of resale or production.

Accounts Payable

Refers to the amounts due by a company to its creditors for goods or services received that have not yet been paid for.