Question

Identifying Capital Assets. Which of the following items are capital assets? a. An automobile held for sale to customers by Midtown Motors, Inc. b. An automobile owned and used by Sherry Hartman to run household errands. c. An automobile owned and used by Windowwashers, Inc. d. The private residence of Robert Hamilton. e. Letters from a famous U.S. President written to Jane Doe. (Jane Doe has the letters.) f. A warehouse owned and used by Holt Packing Company. g. Gold bullion. h. A country and western ballad written by W. Nelson.

Answer 1

Capital assets are one which are purchased by business and are tangible with useful life of more than a year. These are not intended to sale for others

a) No since this is held for sale to customers

b)Yes since this is for personal purpose and used

c)Yes since this is purchased and used by company

d) Yes since this has life more than year

e)No

f) Yes since this has life more than year and ysed

g)Yes

h)No