(a) The requirement is to determine which item would
not be characterized as Sec. 1231 property. Sec. 1231 property
generally includes both depreciable and nondepreciable property
used in a trade or business or held for the production of income if
held for more than twelve months. Specifically excluded from
Sec. 1231 is inventory and property held for sale to customers, as
well as accounts and notes receivable arising in the ordinary
course of a trade or business.