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1. Only a corporation can have inventory.

True False

2. A person can have inventory even if he or she doesn't have a business.

True False

3. A donor's deduction for a donation of inventory is limited to the cost basis of the inventory.

True False

4. A donor who acts like a business owner with respect to his or her property is classified as an investor.

True False

5. An investor recognizes capital gain, not ordinary income, on the sale of assets.

True False

6. A dealer recognizes capital gain, not ordinary income, on the sale of assets.

True False

7. Facts and circumstances determine whether a donor is a dealer or investor.

True False

8. Once a donor is classified as an investor, he or she will remain an investor with respect to the property.

True False

9. A dealer may deduct only the cost basis of property donated to charity.

True False

10. An investor may deduct only the cost basis of property donated to charity.

True False

Basic Quiz - 4.5.5 Investor or Dealer