The fixed assets of a business are: Generally capital assets throughout their holding period. Generally not...

The fixed assets of a business are:

		Generally capital assets throughout their holding period.
		Generally not capital assets.
		Generally are held for investment.
		Generally are held for personal use.
		None of the above.

Expert Solution

A) The fixed assets of a business are generally capital assets throughout their holding period.

For business, a capital asset is an asset that has a useful life longer than one year and is not intended for sale during the normal course of business.

For individuals, capital assets typically refers to anything the individual owns for personal or investment purposes. This excludes property held for sale in the normal course of business, money received or about to be received from the sale of that property, depreciable personal property used for business (such as rental property), protected creative works (such as copyrights on a book), and government publications purchased or received for free from the government.

Another explanation for the answer

A capital asset is defined to include property of any kind held by an assessee, whether connected with their business or profession or not connected with their business or profession. It includes all kinds of property, movable or immovable, tangible or intangible, fixed or circulating.

ekkarill92 answered 1 year ago

What is a Capital Asset?, Holding Period, and Calculation of Gain or Loss, Net Capital Gains...

What is a Capital Asset?, Holding Period, and Calculation of Gain or Loss, Net Capital Gains (LO 8.1, 8.2, 8.3) During 2017, Tom sold Sears stock for $26,200. The stock was purchased 4 years ago for $36,680. Tom also sold Ford Motor Company bonds for $91,700. The bonds were purchased 2 months ago for $77,945. Home Depot stock, purchased 2 years ago for $2,620, was sold by Tom for $3,930. Calculate Tom's net gain or loss, and indicate the nature...

Holding Period Return

If you bought a security at $1,000 and after one year it is sold for $1,250 What is the holding period return of the investment?

What is the holding period return (Capital gain) of a 9% annual coupon bond with a...

What is the holding period return (Capital gain) of a 9% annual coupon bond with a face value of $1000 and with five years to maturity if it is purchased at the beginning of year 1 at a Yield-to-Maturity (market rate) of 6.0% and sold at the beginning of year 2? Assume that rates do not change. 7.4% 7.1% 6.8% 6.0%

A project will require $450,000 for fixed assets and $58,000 for net working capital. The fixed...

A project will require $450,000 for fixed assets and $58,000 for net working capital. The fixed assets will be depreciated straight-line to a zero book value over the five-year life of the project. At the end of the project, the fixed assets will be worthless. The net working capital returns to its original level at the end of the project. The project is expected to generate annual sales of $875,000 and costs of $640,000. The tax rate is 20 percent...

Net capital spending is equal to: ending net fixed assets minus beginning net fixed assets plus...

Net capital spending is equal to: ending net fixed assets minus beginning net fixed assets plus depreciation. ending total assets minus beginning total assets plus depreciation. ending net fixed assets minus beginning net fixed assets minus depreciation. beginning net fixed assets minus ending net fixed assets plus depreciation.

Problem 8-2 (Algorithmic) What is a Capital Asset?, Holding Period, and Calculation of Gain or Loss,...

Problem 8-2 (Algorithmic) What is a Capital Asset?, Holding Period, and Calculation of Gain or Loss, Net Capital Gains (LO 8.1, 8.2, 8.3) During 2017, Tom sold Sears stock for $17,800. The stock was purchased 4 years ago for $24,920. Tom also sold Ford Motor Company bonds for $62,300. The bonds were purchased 2 months ago for $52,955. Home Depot stock, purchased 2 years ago for $1,780, was sold by Tom for $2,670.

Generally reinvest dividends since they are nominal. Holding stock is generally done for the price fluctuations...

Generally reinvest dividends since they are nominal. Holding stock is generally done for the price fluctuations rather than the dividends. However, dividends are a key measure for stocks. What do dividends tell investors? Is the amount important or the consistency of the dividends important?

Discuss the relevance of the company's Fixed Assets (PP&E) to their core business, and how Fixed...

Discuss the relevance of the company's Fixed Assets (PP&E) to their core business, and how Fixed Assets (PP&E) help the company in its business.

Question 5: Capital is an important aspect in any business. Capital is a financial assets, such...

Question 5: Capital is an important aspect in any business. Capital is a financial assets, such as funds held in deposit accounts and/or funds obtained from special financing sources. Capital can also be associated with capital assets of a company that requires significant amounts of capital to finance or expand. As accountant of Alfa wan company, it is your basic role to decide the working capital of your company. what are the points you keep in mind while deciding the...

Generally accepted principles of accounting for typical categories of capital assets based on applicable GASB standards...

Generally accepted principles of accounting for typical categories of capital assets based on applicable GASB standards for government unit as: I. Land II. Building and building improvements III. Infrastructure assets IV. Construction work in progress V. Intangible assets Required: a) Write a report on the classification of general capital assets of a government. Explain the broad categories given above with proper examples of each that are relevant to the government unit. b) Show a sample statement of capital Asset disclosure of a...

Question