Bill owns and operates a farm and a farm machinery dealership.Under the Code, a new tractor that Bill uses on his farm is classified as:

Question

Quizplus · Accepted Answer

A new tractor used on Bill's farm is classified as equipment because it is used in the operation of the farm, not for personal, family, or household purposes (which would be consumer goods), not held for sale or lease (which would be inventory), and while it is related to farming, it is not a product produced by the farm (which would be farm products).

Bill Owns and Operates a Farm and a Farm Machinery