ABC Partnership owns cash of $100,000, land worth $300,000 used in its trade or business, and buildings worth $1,400,000 used in its trade or business.

Question 4. Which of the following assets, if ABC also owned that asset and no other of the following assets, would NOT be substantially appreciated inventory?

Amounts billed to clients for services performed, totalling $250,000, assuming ABC uses the cash method.

Goods held for sale to customers, with an adjusted basis of $180,000 and a fair market value of $230,000.

A $250,000 contract to deliver goods to a customer during the next year.

Amounts billed to clients for services performed, totalling $250,000, assuming ABC uses the accrual method.

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