McGraw-Hill's Taxation of Business Entities 3rd Edition by Connie Weaver, Brian Spilker, Edmund Outslay, John Robinson, Ronald Worsham, Benjamin Ayers, John Barrick

Exercise 13

Identify each of White Corporation's following assets as an ordinary, capital, or §1231 asset.
a. Two years ago, White used its excess cash to purchase a piece of land as an investment.
b. Two years ago, White purchased land and a warehouse. It uses these assets in its business.
c. Manufacturing machinery White purchased earlier this year.
d. Inventory White purchased 13 months ago, but is ready to be shipped to a customer.
e. Office equipment White has used in its business for the past three years.
f. 1,000 shares of stock in Black corporation that White purchased two years ago because it was a good investment.
g. Account receivable from a customer with terms 2/10 net 30.
h. Machinery White held for three years and then sold at a loss of $10,000.