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

Question

Quizplus · Accepted Answer

The sale of an asset held for less than a year outside the normal course of a trade or business is considered a sale of an ordinary asset, as opposed to a capital asset. The other options are incorrect because not all business property and inventory sales are considered ordinary assets, and the holding period for business property does affect the classification of the sale.

Which of the Following Statements Is Correct Regarding the Sale