Identify each of Avery Corporation’s following assets as an ordinary, capital, or §1231 asset.
a) Two years ago, Avery used its excess cash to purchase a piece of land as an investment.
b) Two years ago, Avery purchased land and a warehouse. It uses these assets in its business.
c) Manufacturing machinery Avery purchased earlier this year.
d) Inventory Avery purchased 13 months ago that is ready to be shipped to a customer.
e) Office equipment Avery has used in its business for the past three years.
f) 1,000 shares of stock in Plaid Corporation that Avery purchased two years ago because it was a good investment.
g) Account receivable from a customer with terms 2/10, net 30.
h) Machinery Avery held for three years and then sold at a loss of $10,000.