Which of the Following Statements Is Correct Regarding the Sale

question 29

Multiple Choice

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

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

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Definitions:

RRIF

Registered Retirement Income Fund, a tax-deferred retirement plan in Canada that an individual can use to generate income from the assets inside their Registered Retirement Savings Plan.

Compounded Annually

Interest calculated once a year on both the initial principal and the accumulated interest from previous periods.

Compounded Monthly

Interest on an investment or loan calculated and added to the principal balance monthly, where each month's interest calculation includes the previous month's interest.

Deferred Annuity

A financial security provided by insurers that holds back the distribution of income, either through regular installments or a one-time sum, until it's opted for by the investor.