1) Which of the following cannot be depreciated or amortizated?

a) Machinery used in a business

b) Corprying used in a business

c) Leasehold used in a business

d) patents used in a business

e) Land upon which a factory is built

Please explain why....

2) Which of the followin is a capital asset?

a) Stock held as inventory by a security leader

b) The lots owner by a company which is in the business of buying and reselling residential building lots

c) A "mint et" of 1975 coins owned by a coin deler and which are for sale in her tore

d) An individual's principal residence

Pleae explain why.....

3) D,E, and F from DEF Corporation by transferring the following:

D E F

Property Transferred (FMV) 75,000 25,000 25,000

Stock Received (FMV) 75,000 25,000 0

10 Years Notes (FMV) 0 0 25,000

Would the above transfer quality D and E for nenrecognition of gain or loss under Code Sec 351?

a) YES

b) NO

Please explain why??......

4) Would the transfer in question above (3) qualify F for nonrecognition of gaain or loss under Code Sec 351?

a) Yes

b) No

Pleae explain why??......