Which of the Following Statements Is Correct Regarding the Sale

question 26

Multiple Choice

Which of the following statements is correct regarding the sale of ordinary assets?

• A)the sale of business property held for more than a year is a sale of an ordinary asset.
• B)the sale of inventory for a profit is considered to be a sale of an ordinary asset.
• C)the sale of any business property regardless of holding period is a sale of an ordinary asset.
• D)the sale of an asset outside the normal course of a trade or business is a sale of an ordinary asset.

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Definitions:

Prohibition

The legal act of forbidding something, especially the manufacture, transportation, and sale of alcoholic beverages in historical contexts.

Constitutional Amendment

A formal change or addition proposed or made to a constitution.

Social Consequences

The effects of actions, behaviors, or policies on a society or community, including impacts on social structures and relationships.

Organized Groups

Assemblies of individuals who come together for a specific purpose, following structured rules or norms to achieve collective goals.