Select from the pop-up boxes to indicate whether the following property is a cap
ID: 2574095 • Letter: S
Question
Select from the pop-up boxes to indicate whether the following property is a capital asset, a Sec. 1231 asset, or other property. Double-click on each blank box to see a list of answer choices and click on your selection. Each choice may be used once, more than once, or not at all.
Answer Options:
1. Capital Asset
2. Section 1231 Property
3. Other Property
4. Not Applicable
Assets
Classification
1. Personal residence purchased for $75,000 in 1996 and currently listed for sale at $150,000
2. Stock received in a stock split
3. Land owned and operated as a parking lot since 2007
4. Building acquired in 2006, subject to a mortgage securing a land sales contract, used solely as a sole proprietorship’s retail outlet
5. Store fixtures purchased for $19,000 this year
6. Used furniture and appliances purchased as retail store inventory
7. Accounts receivable from sale of the furniture and appliances sold at retail
8. Acquired goodwill
9. Delivery truck acquired in exchange for parcel of land in 2009, used to deliver furniture for the store since acquisition
10. Treasury stock
Assets
Classification
1. Personal residence purchased for $75,000 in 1996 and currently listed for sale at $150,000
2. Stock received in a stock split
3. Land owned and operated as a parking lot since 2007
4. Building acquired in 2006, subject to a mortgage securing a land sales contract, used solely as a sole proprietorship’s retail outlet
5. Store fixtures purchased for $19,000 this year
6. Used furniture and appliances purchased as retail store inventory
7. Accounts receivable from sale of the furniture and appliances sold at retail
8. Acquired goodwill
9. Delivery truck acquired in exchange for parcel of land in 2009, used to deliver furniture for the store since acquisition
10. Treasury stock
Explanation / Answer
Classification of Assets
Asset Classification 1 Personal residence purchased for $75,000 in 1996 and currently listed for sale at $150,000 Capital Asset 2 Stock received in a stock split Not Applicable 3 Land owned and operated as a parking lot since 2007 Section 1231 Property 4 Building acquired in 2006, subject to a mortgage securing a land sales contract, used solely as a sole proprietorship’s retail outlet Section 1231 Property 5 Store fixtures purchased for $19,000 this year Section 1231 Property 6 Used furniture and appliances purchased as retail store inventory Other Property 7 Accounts receivable from sale of the furniture and appliances sold at retail Other Property 8 Acquired goodwill Not Applicable 9 Delivery truck acquired in exchange for parcel of land in 2009, used to deliver furniture for the store since acquisition Section 1231 Property 10 Treasury stock Not ApplicableRelated Questions
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