Which of the following statements is correct regarding the sale of ordinary assets,as discussed in this chapter?
A)the sale of inventory for a profit is considered to be a sale of an ordinary asset.
B)the sale of an asset outside the normal course of a trade or business is a sale of an ordinary asset.
C)the sale of business property held for more than a year is a sale of an ordinary asset.
D)the sale of any business property regardless of holding period is a sale of an ordinary asset.

Question

Quizplus · Accepted Answer

According to the chapter, the sale of an asset outside the normal course of a trade or business is considered as a sale of an ordinary asset. This means that option A is incorrect since inventory is not considered an ordinary asset, option C is incorrect as business property held for more than a year is considered a long-term asset and not an ordinary asset, and option D is incorrect as the holding period of the property is not the determining factor in categorizing it as an ordinary asset.

Which of the Following Statements Is Correct Regarding the Sale