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vredina [299]
3 years ago
10

Joe Hall owns a limousine for use in his personal service business of transporting passengers to airports. The limousine’s adjus

ted 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
Business
1 answer:
tino4ka555 [31]3 years ago
6 0

Answer:

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.

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