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 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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Students have asked these similar questions

Howard James started a business in 2011 in Jamaica and has been operating in the wholesale/retail industries, where he buys and sells household items to the local market. In 2012, he expanded his business operations and opened two other businesses in Trinidad and Tobago and Antigua and Barbuda, respectively. The annual sales of the respective businesses in 2015 are: Jamaica: J$3,000.00 Trinidad and Tobago: TT$251,000.00 Antigua and Barbuda: $299.00 Mr. James failed to register his business for VAT/GCT as specified by the respective Sales Tax Acts and Regulations. He stated that there is no need for his businesses to be registered because their sales are under the VAT thresholds and thus not required to be registered. a) You are to advise Mr. James if his decision not to register his businesses is justifiable. b) Search the respective VAT Acts for the 3 countries and advise Mr. James of the benefits of being a registered taxpayer; also the penalties for not registering for VAT/GCT.

Get correct answer general accounting question

PLEASE HELP FILL THESE CELLS. NOTICE I HAVE PROVIDE THE OPTIONS ON THE DROP DOWN

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

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