Which of the following assets held by a cash basis accounting firm is a 1231 asset?

a. An account receivable from a client.

b. A desk used in the business and held more than one year.

c. A computer used in the business held more than one year but fully depreciated under 179 when acquired.

d. "A desk used in the business and held more than one year" and "A computer used in the business held more than one year but fully depreciated under 179 when acquired".

In the case of interest income from state and Federal bonds:

a. Interest on bonds issued by State A received by a resident of State B cannot be subject to income tax in State B.

b. Interest on U.S. government bonds received by a state resident can be subject to that state's income tax.

c. Interest on U.S. government bonds is subject to Federal income tax.

d. All of these choices are correct.