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

Want to see more full solutions like this?

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.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

choose best answer

Hi expert please help me this question

correct answer please

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.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

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.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

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.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

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

Ch. 4 - All of the following assets are capital assets,...Ch. 4 - Which of the following is a capital asset? Account...Ch. 4 - Yasmeen purchases stock on January 30,2018 . If...Ch. 4 - Vijay sells land and receives $5,000 cash, a...Ch. 4 - Prob. 5MCQ Ch. 4 - In 2019, what is the top tax rate for individual...Ch. 4 - In November 2019, Ben and Betty (married, filing...Ch. 4 - Prob. 8MCQ Ch. 4 - In 2019, Tim, a single taxpayer, has ordinary...Ch. 4 - Prob. 10MCQ

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

Videos

Answer to Problem 1MCQ

Explanation of Solution

Want to see more full solutions like this?

Chapter 4 Solutions

Additional Business Textbook Solutions