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Capital assets include:
Suggested Answer: C
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Choice 'c' is correct. Investment assets of a taxpayer that are not inventory are capital assets. The manufacturing company would have capital assets including an investment in U.S. Treasury bonds.
Choice 'a' is incorrect. Accounts receivable generated from the sale of inventory are excluded from the statutory definition of capital assets.
Choice 'b' is incorrect. Depreciable property used in a trade or business is excluded from the statutory definition of capital assets.
Choice 'd' is incorrect. Land is usually a capital asset, but when it is effectively inventory, as when it is used by a developer to be subdivided, it is excluded from the statutory definition of capital assets.
9 comments · newest first
WI
Winfred
11 months ago
Totally agree with B and D being capital assets!
AL
Alethea
12 months ago
Wait, can you really count U.S. Treasury bonds as capital assets?
BE
Bette
12 months ago
A is not a capital asset, just accounts receivable.
CR
Crissy
12 months ago
I think D is also a capital asset, right?
VE
Veronica
1 year ago
Definitely B, that's classic capital asset stuff.
JA
Janna
1 year ago
Ah, I think I know the answer to this one. A SiL test environment is all about simulating the internal signals and behaviors of the test object, so I'm going to go with option A.
SH
Sheridan
1 year ago
Solvency ratio? I think that's total assets divided by total liabilities. Always double-check the numbers carefully.
TR
Tracie
1 year ago
I remember that we discussed how sizing based on application needs could be crucial, but I'm not sure if that's option C or D.
TA
Tamra
1 year ago
I have a feeling the XDPING utility might be the right choice here since it deals with connectivity problems.