Classify each of the following assets as ordinary income property, capital asset property, Section 1231 property, or personal use property. If more than one classification is possible, explain the circumstances that would determine the proper classification.
a. Sarah is a sculptor. During the current year, she gives one of her statues to her niece as a gift.
b. Petros sells facsimiles of Greek artifacts in a store he owns. Because of a cash-flow problem, he sells some accounts receivable to a discounter for 75% of face value.
c. Lana is a college professor. She owns an apartment building and rents apartments to students.
d. Ryan uses his automobile 75% of the time in his job as a real estate salesperson. The remaining use of the automobile is for personal purposes.
e. Fred owns a used car business. During the current year, he purchases a piece of land across the street from his used car business. Fred intends to expand his business and feels that he will ultimately need the space for the extra inventory he wants to purchase over the next few years.
f. Althea gets a tip from a friend that a new golf course is going to be developed south of town. Because she thinks the surrounding land is sure to appreciate in value after the golf course is built, Althea purchases several plots of land near where her friend tells her the golf course is to be built.