Fact Pattern 20-1 (Questions 14-16 apply)
Excel Vehicles, Inc., makes and sells automobiles to auto dealers, including Fine Auto Sales. Fine sells the cars to consumers and businesses.
-Refer to Fact Pattern 20-1.Holly,a professional driver,buys an Excel from Fine to drive in a Grand Prix race.Holly's Excel is
A) a consumer good.
B) an accession.
C) equipment.
D) inventory.

Question

Quizplus · Accepted Answer

Holly's Excel is not a consumer good because it was not bought for personal, family, or household use. It is also not an accession because she did not acquire it through a natural increase or attachment to other property. It cannot be considered inventory of Fine Auto Sales because it was sold specifically to Holly, and not for resale. Instead, it is considered equipment because it was acquired for use in a specific activity, i.e. the Grand Prix race.

Fact Pattern 20-1 (Questions 14-16 Apply)