Question

Bill owns and operates a farm and a farm machinery dealership. Under the Code, a new tractor that Bill uses on his farm is classified as: a. equipment. b. farm products. c. inventory. d. consumer goods.

Answer 1

Option A i.e., equipment.

Step-by-step explanation:

Bill runs a small a farm distributor and a farm equipment company. A new tractor, which Bill operates on his farm, is listed as equipment under the Code because he runs a farm and also deals with a farm machinery that is equipment.

• Option B is not true about the scenario because he is not deals with the farm products he, ha has the company of farm machinery.
• Option c is not true about the scenario because inventory deals with the already stored products related to its field and in the above scenario, there is not mention about that.
• Option D is also not true about the scenario because there is the difference in the consumer goods and the equipments.