Determine the proper classification(s) of the asset discussed in the following scenario: Victoria purchased a new show case saw for her antique business.
I.Personal use property.
IV.Intangible property.
II.Business use property.
V.Real estate.
III.Tangible property.
VI.Personal property.

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

Question

Determine the proper classification(s) of the asset discussed in the following scenario: Victoria purchased a new show case saw for her antique business.
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, III and VI are correct.
B)Statements II and III are correct.
C)Only statement VI is correct.
D)Statements II, III, and VI are correct.
E)Statements II, IV and VI are correct.

Quizplus · Accepted Answer

The asset discussed in the scenario is a showcase saw that Victoria purchased for her antique business. This makes it a tangible property, which is owned by Victoria's business, making it a business use property. However, it cannot be considered as real estate as it is not land or any interest in land. As the showcase saw is owned and used for Victoria's business, it cannot be considered as personal use property. And it cannot be considered as an intangible asset because it is a physical, tangible asset. Therefore, only statements II, III, and VI are correct, making choice D the best answer.

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