Question

Which of the following assets would be included in Class​ 10.1?

A. Motor​ vehicles, including passenger​ vehicles, which cost less than​ $30,000.
B. Passenger​ vehicles, such as​ sedans, station​ wagons, sports​ cars, with a cost more than​ $30,000.
C. Passenger​ vehicles, such as​ sedans, station​ wagons, sports​ cars, with a cost less than​ $30,000.
D. Motor​ vehicles, such as​ pick-up trucks, trailers, and vans used to transport​ goods, equipment or passengers.

Answer 1

Class 10.1 assets typically include more expensive passenger vehicles with a cost exceeding $30,000. Choice B refers to passenger vehicles costing more than $30,000, making it the correct selection for inclusion in Class 10.1.

Step-by-step explanation:

To determine which assets would be included in Class 10.1 as per tax regulations or accounting standards, it is essential to understand what Class 10.1 usually entails. Class 10.1 typically includes passenger vehicles that have a cost above a certain threshold, often set by governmental tax agencies. In this case, Class 10.1 assets would generally comprise more expensive passenger vehicles, such as sedans, station wagons, and sports cars with a cost of more than $30,000. Comparing answer choices, B and D, we can deduce that choice D, which includes motor vehicles, such as pick-up trucks, trailers, and vans used to transport goods, equipment, or passengers, would not specifically fit into Class 10.1 because these types of vehicles are often categorized differently due to their nature of use. Therefore, Choice B, which refers to passenger vehicles with a cost of more than $30,000, is the correct selection as these assets are consistent with what would be included in Class 10.1.