Which of the following assets held by a cash basis accounting firm is a § 1231 asset?
A) An account receivable from a client.
B) A desk used in the business and held more than one year.
C) An investment in Orange Company common stock.
D) A computer used in the business, held more than one year, but fully depreciated under § 179 when acquired.
E) b. and d.

Question

Quizplus · Accepted Answer

A § 1231 asset is an asset that has been held for more than one year and is used in a trade or business or held for the production of rental income. Both the desk and the computer meet these requirements, as they are used in the business and have been held more than one year. The account receivable and the investment in Orange Company common stock do not meet the requirements for a § 1231 asset.

Which of the Following Assets Held by a Cash Basis