For an individual business owner, which of the following would typically be classified as a capital asset for federal income tax purposes? a. Marketable securities. b. Inventory. c. Machinery and equipment used in a business. d. Accounts receivable.

1 answer
Question:

For an individual business owner, which of the following would typically be classified as a capital asset for federal income tax purposes? a. Marketable securities. b. Inventory. c. Machinery and equipment used in a business. d. Accounts receivable.

Answers

Answer:a. Marketable securitiesExplanation:A(correct one). Capital assets are able to cover all marketable securities unless the taxpayer becomes a dealer. B -incorrect. The inventory is not such as capital although it is asset. It is fixed asset typeC-incorrect. The assets which are depreciable must be excluded from capital assets group. Because they will be fixed ones again.D-incorrect. Accounts receivable of a business are excluded from the definition of capital assets. because they are the other section of accounting elements and not considered as asset at all.

Similar Solved Questions

1 answer

Humble ISD G 800 x 162 G Should playing tagi GL Graded Work: Trig Mixed Practice Use the inverse trig ratios to find the value of the missing angle. Round to the nearest WHOLE NUMBER. 40 25 Angle

Humble ISD G 800 x 162 G Should playing tagi GL Graded Work: Trig Mixed Practice Use the inverse trig ratios to find the value of the missing angle. Round to the nearest WHOLE NUMBER. 40 25 Angle...
2 answers

What is the speaker's purpose? to describe the events he has witnessed over the past few months to entertain his audience with a patriotic story to inform his audience about the latest news from Great Britain to persuade his audience to revolt against the British

What is the speaker's purpose? to describe the events he has witnessed over the past few months to entertain his audience with a patriotic story to inform his audience about the latest news from Great Britain to persuade his audience to revolt against the British...
1 answer

Val walks 2 3/5 miles each day. Bill runs 10 miles once every 4 days. I'm 4 days, who covers the greater distance?

Val walks 2 3/5 miles each day. Bill runs 10 miles once every 4 days. I'm 4 days, who covers the greater distance?...
1 answer

Please help me. Also make it easy to understand.

Please help me. Also make it easy to understand....
1 answer

What are corresponding parts

what are corresponding parts...
1 answer

Which european countries colonized the most countries?

which european countries colonized the most countries?...
2 answers

If you drive for 3 hour at 60 mph and then 2 hours at 70 mph, how far will you travel

If you drive for 3 hour at 60 mph and then 2 hours at 70 mph, how far will you travel...
1 answer

Help please i beg...

help please i beg......
1 answer

How do i change the area using a scale factor

how do i change the area using a scale factor...
2 answers

Types of phrases with 5 examples each​

types of phrases with 5 examples each​...
1 answer

Help on math please? Thanks

Help on math please? Thanks...
1 answer

Which is smaller half of 36 or 1/7 of 42

Which is smaller half of 36 or 1/7 of 42...
2 answers

A landscaper is creating a rectangular flower bed such that the width is half of the length.The area of the flower that is 34 ft.² Write an equation to determine the width of the flower bed to the nearest tenth of a foot

A landscaper is creating a rectangular flower bed such that the width is half of the length.The area of the flower that is 34 ft.² Write an equation to determine the width of the flower bed to the nearest tenth of a foot...
1 answer

Using the following information, compute the direct materials used. Raw materials inventory, January 1 $ 20000 Raw materials inventory, December 31 40000 Work in process, January 1 18000 Work in process, December 31 12000 Finished goods, January 1 40000 Finished goods, December 31 32000 Raw materials purchases 1800000 Direct labor 760000 Factory utilities 150000 Indirect labor 50000 Factory depreciation 400000 Operating expenses 420000

Using the following information, compute the direct materials used. Raw materials inventory, January 1 $ 20000 Raw materials inventory, December 31 40000 Work in process, January 1 18000 Work in process, December 31 12000 Finished goods, January 1 40000 Finished goods, December 31 32000 Raw material...
1 answer

What is (34-23)+5? answer

What is (34-23)+5? answer...
1 answer

Paleolithic religious beliefs a. centered around the idea that forces of nature had been created to serve human beings. b. made a clear distinction between nature and the supernatural. c. centered around the idea that human beings needed to appease the forces of nature. d. did not include belief in life after death

Paleolithic religious beliefs a. centered around the idea that forces of nature had been created to serve human beings. b. made a clear distinction between nature and the supernatural. c. centered around the idea that human beings needed to appease the forces of nature. d. did not include belief in ...
1 answer

(x2 + 4x + 4) = (x + 2) Long division

(x2 + 4x + 4) = (x + 2) Long division...
1 answer

What is the relationship between purchasing power and inflation?

what is the relationship between purchasing power and inflation?...
2 answers

Which word shows an action that already happened? A. nail B. nails C. nailed Another Question for my sibling

Which word shows an action that already happened? A. nail B. nails C. nailed Another Question for my sibling...

-- 0.010636--