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NEW QUESTION: 1
Capital assets include:
A. A corporation's accounts receivable from the sale of its inventory.
B. Seven-year MACRS property used in a corporation's trade or business.
C. A manufacturing company's investment in U.S. Treasury bonds.
D. A corporate real estate developer's unimproved land that is to be subdivided to build homes, which will
be sold to customers.
Answer: C
Explanation:
Explanation
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.
NEW QUESTION: 2
You have distribution group named Car Parking Distribution Group that is configured as shown in the following exhibit.
Use the drop-down menus to select the answer choice that completes each statement based on the information presented in the graphic.
Answer:
Explanation:
Explanation
References:
https://docs.microsoft.com/en-us/powershell/module/exchange/users-and-groups/set-distributiongroup?view=exc
NEW QUESTION: 3
RS purchased an asset on 1 May 20X1 for $200,000, exclusive of import duties of $25,000.
The asset was sold on 1 December 20X3 for $450,000, incurring costs to sell of $15,000.
RS is resident in Country Y where indexation is allowable from the date of purchase to the date of sale.
The indexation factor increased by 40% in the period 1 May 20X1 to 1 December 20X3.
Capital gains are taxed at 25%.
What is the capital tax due from RS on disposal of the asset?
A. $38,750
B. $120,000
C. $28,500
D. $30,000
Answer: D