Multiple Choice
Which of the following assets does the IRS disregard as being a capital asset?
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1. Introduction to Accounting
Types of Accounting
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Which of the following would NOT be considered a real estate fixture?
A
A ceiling fan installed and wired into the ceiling
B
Wall-to-wall carpeting that is glued to the floor
C
A refrigerator that is plugged in and can be easily removed
D
Built-in cabinets
Verified step by step guidance1
Understand the concept of a real estate fixture: A fixture is an item that is physically attached to the property and is considered part of the real estate. It typically cannot be removed without causing damage to the property.
Analyze each option provided in the problem to determine whether it qualifies as a fixture based on the definition.
Option 1: A ceiling fan installed and wired into the ceiling is considered a fixture because it is permanently attached to the property and cannot be removed without significant effort.
Option 2: Wall-to-wall carpeting that is glued to the floor is also considered a fixture because it is permanently affixed to the property and removing it would likely cause damage.
Option 3: A refrigerator that is plugged in and can be easily removed is NOT considered a fixture because it is not permanently attached to the property and can be moved without causing damage. This is the correct answer.
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