25) Which of the following assets held by a retail business is a 1231 asset?

a. Inventory.

b. A machine used in the business and held less than one year.

c. A factory building used in the business and held more than one year.

d. Accounts receivable.

e. All of the above.

26) Both short-term and long-term holding periods, respectively, axe:

a eighteen months or less and more than eighteen months

b twenty four months or less and more than thwenty four months

c six months or less and more than six months

d twelve months or less and more than twelve months

e none of the above

21) Which of the following statements is correct?

a. The purpose of the AMT is to replace the regular income tax.

b. Adjustments can either increase AMTI or decrease AMTL

c. Tax preferences can either increase AMTI or decrease AMTI.

d. Tax preferences can only decrease AMTI.

e. None of the above is correct.

l 8) Terry pays $8,000 this year to become a charter member of Mammoth University's Athletic

Council. The membership ensures that Terry will receive choice seating at all ofManlmoth's

home basketball games. In addition, Terry pays $2,200 (the regular retail price) for season tickets

for himself and his wife. For these items, how much qualifies as a charitable contribution?

a. $6,200

b. $6,400

c. $8,000

d. $10,200

e. None of the above.