Determine the proper classification(s) of the asset discussed in the following scenario: Jack bought a new table saw for his home.
I.Personal use property.
IV.Intangible property.
II.Business use property.
V.Real estate.
III.Tangible property.
VI.Personal property.

A)Statements I and III are correct.
B)Only statement VI is correct.
C)Statements II and III are correct.
D)Statements II, III, and VI are correct.
E)Statements I, III, and VI are correct.

Question

Determine the proper classification(s) of the asset discussed in the following scenario: Jack bought a new table saw for his home.
I.Personal use property.
IV.Intangible property.
II.Business use property.
V.Real estate.
III.Tangible property.
VI.Personal property.
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A)Statements I and III are correct.
B)Only statement VI is correct.
C)Statements II and III are correct.
D)Statements II, III, and VI are correct.
E)Statements I, III, and VI are correct.

Quizplus · Accepted Answer

The asset in the scenario is a tangible personal property as it is a physical item that can be touched and moved. It is also for personal use, as mentioned in the scenario. Therefore statements I and III are correct. Additionally, it is not an intangible asset as it has a physical form. It is not real estate as it is not land or any permanent structures attached to land. It is not a business asset as it is not used for business purposes. Therefore, statement IV is incorrect and statements II and V are also incorrect. Therefore, the correct choice is E.

Determine the Proper Classification(s) of the Asset Discussed in the Following