QuestionJune 4, 2025

Dr. Jonid is selling her dental practice after owning it for 10 years. Dr. Kindred is going to buy the dental practice at a higher price because Dr Jonid has over 700 patients and the patients will continue to do business with the practice. Which type of asset is this transaction? a. Current asset b. Non-current asset c. Short-term investment d. Capital asset

Dr. Jonid is selling her dental practice after owning it for 10 years. Dr. Kindred is going to buy the dental practice at a higher price because Dr Jonid has over 700 patients and the patients will continue to do business with the practice. Which type of asset is this transaction? a. Current asset b. Non-current asset c. Short-term investment d. Capital asset
Dr. Jonid is selling her dental practice after owning it for 10 years. Dr. Kindred is going to buy the dental practice at a higher price because Dr Jonid has over 700 patients
and the patients will continue to do business with the practice. Which type of asset is this transaction?
a. Current asset
b. Non-current asset
c. Short-term investment
d. Capital asset

Solution
4.2(285 votes)

Answer

d. Capital asset Explanation 1. Identify the nature of the asset The dental practice, including its patient base, is a long-term investment that provides ongoing economic benefits. 2. Classify the asset type Assets providing long-term benefits and used in operations are typically classified as capital assets.

Explanation

1. Identify the nature of the asset<br /> The dental practice, including its patient base, is a long-term investment that provides ongoing economic benefits.<br /><br />2. Classify the asset type<br /> Assets providing long-term benefits and used in operations are typically classified as capital assets.
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