1.Larry is a writer. He sold several personal items to supplement his income during the tax year. He must categorize the items as capital or noncapital assets for his return. Which of the following is a noncapital asset?

a) Household furniture for his personal home

b) His coin collection

c) An antique rug in his living room

d) The copyrights on his books

2. Hank sold several personal and business assets during the tax year. Which of the assets listed below is a capital asset?

a) Inventory held for sale to Hanks customers

b) Real property used in Hanks business

c) Stocks and bonds held in Hanks personal account

d) Accounts or notes receivable acquired in Hanks business

3. Frank sold several items during the tax year, which included investment property. Which of the items below is listed in error as investment property?

a) Depreciable property used in his antique business

b) Coin collection

c) Jewelry

d) A house he owns and resides in

4. Mr. Black purchased a piece of equipment on 1/6/2019. The sales price was $15,000 for the equipment. In addition to the sales price, the agent who obtained the equipment for him charged him a 5% commission. He also paid freight to have the equipment delivered in the amount of $875. The sales tax was 4.5% of the sale price. What is his basis for the equipment?

a) $15,000

b) $15,875

c) $16,625

d) $17,300