Which of the following statements is correct regarding the sale of ordinary assets as discussed in this chapter?
A)The sale of business property held for more than a year is a sale of an ordinary asset.
B)The sale of an asset held less than a year)outside the normal course of a trade or business is a sale of an ordinary asset.
C)The sale of any business property regardless of holding period is a sale of an ordinary asset.
D)The sale of inventory for a profit is considered to be a sale of an ordinary asset.

Question

Quizplus · Accepted Answer

The sale of an asset held for less than a year and outside the normal course of business is considered a sale of an ordinary asset. Other options are incorrect as the sale of business property held for more than a year is considered a sale of a long-term capital asset, any sale of business property is not necessarily a sale of an ordinary asset, and the sale of inventory is considered a sale of inventory and not an ordinary asset.

Which of the Following Statements Is Correct Regarding the Sale