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 11 months ago

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