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Berkeley Corporation has a policy of furnishing new automobiles to the athletic department of the local university. The automobiles are

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Berkeley Corporation has a policy of furnishing new automobiles to the athletic department of the local university. The automobiles are used for short periods of time by the extremely popular head basketball coach. When the automobiles are returned to Berkeley Corporation, they are sold to regular customers. The owner of Berkeley Corporation maintains that any such cars held for more than one year should qualify as Sec. 1231 property. Do you agree?
Research sources include:
• Rev. Rul. 75-538, 1975-2 C.B. 34
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

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Federal Taxation 2016 Comprehensive

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Question Posted: December 11, 2015 02:40:42
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