Question

Which of the following assets is not a Section 1231 asset? a.Inventory b.The unharvested crops of a farmer c.Timber d.Equipment used in a business e.All of these choices are Section 1231 assets.

Answer 1

Answer:

The correct answer is letter "E": All of these choices are Section 1231 assets.

Explanation:

Section 1231 assets are the depreciable commercial properties of a company held for one year or more. The term emanates from the U.S. section 1231 Internal Revenue Code. Section 1231 assets include buildings, lands with equipment, timber and other natural resources.