Ask Question
20 June, 06:36

Joe Hall owns a limousine for use in his personal service business of transporting passengers to airports. The limousine's adjusted basis is $40,000. In addition, Hall owns his personal residence and furnishings, that together cost him $280,000. Hall's capital assets amount to A. $320,000 B. $280,000 C. $40,000 D. $0

+3
Answers (1)
  1. 20 June, 09:30
    0
    B. $280,000

    Explanation:

    The capital assets are those assets which are used for the personal purpose, not for the business purpose. The examples of capital assets include personal property, stocks, bonds, clothing, dwelling, etc.

    It excludes that property which is used for trade or business purpose like - limousine.

    In the given situation, the capital asset would be $280,000 as it owns for personal residence and furnishings.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Joe Hall owns a limousine for use in his personal service business of transporting passengers to airports. The limousine's adjusted basis ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers