All of the following assets are capital assets, except A personal automobile IBM stock A child's bicycle Personal furniture Used car inventory held by a car dealer

Question

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Answer 1

Textbook Question

Chapter 4, Problem 1MCQ

All of the following assets are capital assets, except

A personal automobile
IBM stock
A child's bicycle
Personal furniture
Used car inventory held by a car dealer

Expert Solution & Answer

To determine

Concept Introduction:

The term capital asset is used in the calculation of capital gain or loss of the taxpayer. A capital gain or loss is calculated on the sale of capital assets. The income tax law has given an exclusive definition ofcapital assets.

To choose:The assets not considered as capital assets.

Answer to Problem 1MCQ

e.

Explanation of Solution

Explanation for correct answer:

A used car inventory held by a car dealer is a stock in trade is not covered in the definition of a capital asset. Hence option e is correct.

Explanation for incorrect answers:

a. A personal automobile is covered in the definition of capital assets. Hence this option is not correct.

b. Shares or stocks are covered in the definition of capital assets. Hence this option is not correct.

c. A child’s bicycle is covered in the definition of capital assets. Hence this option is not correct.

d. Personal furniture is covered in the definition of capital assets. Hence this option is not correct.

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Answer 2

Textbook Question

Chapter 4, Problem 1MCQ

All of the following assets are capital assets, except

A personal automobile
IBM stock
A child's bicycle
Personal furniture
Used car inventory held by a car dealer

Expert Solution & Answer

To determine

Concept Introduction:

The term capital asset is used in the calculation of capital gain or loss of the taxpayer. A capital gain or loss is calculated on the sale of capital assets. The income tax law has given an exclusive definition ofcapital assets.

To choose:The assets not considered as capital assets.

Answer to Problem 1MCQ

e.

Explanation of Solution

Explanation for correct answer:

A used car inventory held by a car dealer is a stock in trade is not covered in the definition of a capital asset. Hence option e is correct.

Explanation for incorrect answers:

a. A personal automobile is covered in the definition of capital assets. Hence this option is not correct.

b. Shares or stocks are covered in the definition of capital assets. Hence this option is not correct.

c. A child’s bicycle is covered in the definition of capital assets. Hence this option is not correct.

d. Personal furniture is covered in the definition of capital assets. Hence this option is not correct.

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Answer 3

Textbook Question

Chapter 4, Problem 1MCQ

All of the following assets are capital assets, except

A personal automobile
IBM stock
A child's bicycle
Personal furniture
Used car inventory held by a car dealer

Expert Solution & Answer

To determine

Concept Introduction:

The term capital asset is used in the calculation of capital gain or loss of the taxpayer. A capital gain or loss is calculated on the sale of capital assets. The income tax law has given an exclusive definition ofcapital assets.

To choose:The assets not considered as capital assets.

Answer to Problem 1MCQ

e.

Explanation of Solution

Explanation for correct answer:

A used car inventory held by a car dealer is a stock in trade is not covered in the definition of a capital asset. Hence option e is correct.

Explanation for incorrect answers:

a. A personal automobile is covered in the definition of capital assets. Hence this option is not correct.

b. Shares or stocks are covered in the definition of capital assets. Hence this option is not correct.

c. A child’s bicycle is covered in the definition of capital assets. Hence this option is not correct.

d. Personal furniture is covered in the definition of capital assets. Hence this option is not correct.

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Answer 4

Textbook Question

Chapter 4, Problem 1MCQ

All of the following assets are capital assets, except

A personal automobile
IBM stock
A child's bicycle
Personal furniture
Used car inventory held by a car dealer

Expert Solution & Answer

To determine

Concept Introduction:

The term capital asset is used in the calculation of capital gain or loss of the taxpayer. A capital gain or loss is calculated on the sale of capital assets. The income tax law has given an exclusive definition ofcapital assets.

To choose:The assets not considered as capital assets.

Answer to Problem 1MCQ

e.

Explanation of Solution

Explanation for correct answer:

A used car inventory held by a car dealer is a stock in trade is not covered in the definition of a capital asset. Hence option e is correct.

Explanation for incorrect answers:

a. A personal automobile is covered in the definition of capital assets. Hence this option is not correct.

b. Shares or stocks are covered in the definition of capital assets. Hence this option is not correct.

c. A child’s bicycle is covered in the definition of capital assets. Hence this option is not correct.

d. Personal furniture is covered in the definition of capital assets. Hence this option is not correct.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Concept Introduction:

The term capital asset is used in the calculation of capital gain or loss of the taxpayer. A capital gain or loss is calculated on the sale of capital assets. The income tax law has given an exclusive definition ofcapital assets.

To choose:The assets not considered as capital assets.

Answer to Problem 1MCQ

e.

Explanation of Solution

Explanation for correct answer:

A used car inventory held by a car dealer is a stock in trade is not covered in the definition of a capital asset. Hence option e is correct.

Explanation for incorrect answers:

a. A personal automobile is covered in the definition of capital assets. Hence this option is not correct.

b. Shares or stocks are covered in the definition of capital assets. Hence this option is not correct.

c. A child’s bicycle is covered in the definition of capital assets. Hence this option is not correct.

d. Personal furniture is covered in the definition of capital assets. Hence this option is not correct.

Answer 8

Expert Solution & Answer

To determine

Concept Introduction:

The term capital asset is used in the calculation of capital gain or loss of the taxpayer. A capital gain or loss is calculated on the sale of capital assets. The income tax law has given an exclusive definition ofcapital assets.

To choose:The assets not considered as capital assets.

Answer to Problem 1MCQ

e.

Explanation of Solution

Explanation for correct answer:

A used car inventory held by a car dealer is a stock in trade is not covered in the definition of a capital asset. Hence option e is correct.

Explanation for incorrect answers:

a. A personal automobile is covered in the definition of capital assets. Hence this option is not correct.

b. Shares or stocks are covered in the definition of capital assets. Hence this option is not correct.

c. A child’s bicycle is covered in the definition of capital assets. Hence this option is not correct.

d. Personal furniture is covered in the definition of capital assets. Hence this option is not correct.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Concept Introduction:

The term capital asset is used in the calculation of capital gain or loss of the taxpayer. A capital gain or loss is calculated on the sale of capital assets. The income tax law has given an exclusive definition ofcapital assets.

To choose:The assets not considered as capital assets.

Answer 12

Answer to Problem 1MCQ

e.

Answer 13

Explanation of Solution

Explanation for correct answer:

A used car inventory held by a car dealer is a stock in trade is not covered in the definition of a capital asset. Hence option e is correct.

Explanation for incorrect answers:

a. A personal automobile is covered in the definition of capital assets. Hence this option is not correct.

b. Shares or stocks are covered in the definition of capital assets. Hence this option is not correct.

c. A child’s bicycle is covered in the definition of capital assets. Hence this option is not correct.

d. Personal furniture is covered in the definition of capital assets. Hence this option is not correct.

Answer 14

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All of the following assets are capital assets, except A personal automobile IBM stock A child's bicycle Personal furniture Used car inventory held by a car dealer

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Answer to Problem 1MCQ

Explanation of Solution

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