Which of the following is not typically considered to be a "hot asset?"
A)Accounts receivable of a cash basis partnership.
B)Inventory with a basis of $10,000 and a fair market value of $15,000.
C)Depreciation recapture potential.
D)Stock held for investment.
E)Land held for development.

Question

Quizplus · Accepted Answer

Stock held for investment is not considered a "hot asset" because "hot assets" typically refer to items that can generate ordinary income, such as accounts receivable, inventory, and depreciation recapture potential. Stock held for investment is generally a capital asset.

Which of the Following Is Not Typically Considered to Be