Section 1231 Property Is

question 10

Multiple Choice

Section 1231 property is:

• A)Property used in a trade or business that is subject to depreciation and is held for more than one year.
• B)Property used in a trade or business that may or may not be subject to depreciation and held for less than one year.
• C)Property used in a trade or business that may or may not be subject to depreciation and is held for more than one year.
• D)All property used in a trade or business regardless of how long the asset is held.

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Definitions:

Law

Rules devised and applied by institutions of society or the government to modulate behavior.

Legally Sufficient Value

An acceptable form or measure of value that must be provided in a contract to make it binding and enforceable under law.

Consideration

Something of value (such as money, goods, services, or promised actions) that is exchanged between parties in a contractual agreement.

Adequacy

Adequacy refers to the suitability of something to meet the needs in its context or the sufficiency in quantity or quality to fulfill a specific requirement.