Which of the Following Is Section 1231 Property

question 62

Multiple Choice

Which of the following is Section 1231 property?

• A)Accounts receivable.
• B)A building used in a trade or business.
• C)Inventory.
• D)Copyright owned by the author.

---

Definitions:

Implicit Costs

The opportunity costs that arise from using resources that a business already owns rather than earning revenue from those resources elsewhere.

Explicit Costs

Direct, out-of-pocket expenses incurred in conducting a business activity, such as wages, rent, and materials.

Economic Profits

Profits earned by a company after accounting for both explicit (direct) and implicit (opportunity) costs.

Marginal-Cost Curve

A graph that shows the relationship between the marginal cost of producing an additional unit and the total quantity of the product produced.