Question

which of the following would be treated as part of a business activity? question 5select one: a. land and buildings acquired for use in a business. b. office equipment acquired for use in a home office by a self-employed individual. c. a house constructed as the principal residence by its owner. d. an automobile acquired for resale by a car dealer.

Answer 1

Land and buildings for business use, office equipment in a home office for business, and vehicles for resale by a car dealer are considered part of a business activity, while a personal residence is not.

Step-by-step explanation:

Among the options provided, the assets that would be treated as part of a business activity include:

• a. land and buildings acquired for use in a business.
• b. office equipment acquired for use in a home office by a self-employed individual.
• d. an automobile acquired for resale by a car dealer.

Assets used in the course of conducting business, such as land and buildings for business operations, office equipment in a home office for business purposes, and vehicles for resale by a car dealer, are considered business assets for accounting and tax purposes. Conversely, a house constructed for personal use does not qualify as a business activity.