Question: All assets listed below have been held for more than one year. Which assets might be classified as Sec. 1231, Sec. 1245, or Sec. 1250

All assets listed below have been held for more than one year. Which assets might be classified as Sec. 1231, Sec. 1245, or Sec. 1250 property? An asset may be classified as more than one type of property.
1. Land on which a factory is located
2. Equipment used in the factory
3. Raw materials inventory
4. Patent purchased to allow use of a manufacturing process
5. Land held primarily for sale
6. Factory building acquired in 1986 (the straight-line ACRS recovery method is used)

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