Which of the following assets would not be classified as a hot asset?
A)Inventory.
B)Depreciation recapture.
C)Cash.
D)Accounts receivable for a cash-method taxpayer.

Question

Quizplus · Accepted Answer

Cash is not considered a hot asset because it does not generate ordinary income upon sale or exchange, unlike inventory, depreciation recapture, and accounts receivable for a cash-method taxpayer.

Which of the Following Assets Would Not Be Classified as a Hot