Match the following independent descriptions as hot i.e., ordinary income-producing) or nonhot assets with the following statements.
-Marketable securities not held as inventory).
A)Hot assets for purposes of distributions, liquidation of a partnership interest under § 736, and sale of a partnership interest.
B)May be a hot asset for some but not all the purposes stated in a).
C)Not a hot asset.

Question

Quizplus · Accepted Answer

Marketable securities not held as inventory are generally considered nonhot assets because they do not generate ordinary income like hot assets do. Hot assets typically include items like inventory and receivables that produce ordinary income, whereas marketable securities are usually capital assets.

Match the Following Independent Descriptions as Hot I