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Match the following independent descriptions as hot (i.e., ordinary income-producing) or nonhot assets with the...

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Accounting

Match the following independent descriptions as hot (i.e., ordinary income-producing) or nonhot assets with the statements below.

- a. b. c.

Inventory with a basis of $10,000 and a fair market value of $15,000.
- a. b. c.

Marketable securities (not held as inventory).
- a. b. c.

Cash basis accounts receivable.
- a. b. c.

Installment receivables for sale of a capital asset.
- a. b. c.

Highly appreciated land held by the partnership for the purpose of subdividing and selling lots.
- a. b. c.

Inventory with a basis of $10,000 and a fair market value of $10,500.
a.

Hot assets for purposes of distributions, liquidation of a partnership interest under 736, and sale of a

partnership interest.
b.

May be a hot asset for some but not all the purposes stated in (a).
c.

Not a hot asset.

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