All of the following are capital assets with the exception of A. equipment used in a trade or business. B. corporate stock held for investment. C. personal residence. D. a Rembrandt painting held in a private collection.

A. equipment used in a trade or business

Explanation:

Capital assets are those assets which are held for more than an year usually and on disposal of which, capital gain arises. Such assets are not usually sold in the normal course of business.

Examples of capital assets would be building, machinery, motor vehicle, bonds, etc.

Corporate stock held for investment purpose comprises of a capital asset and upon disposal will lead to a possibility of capital gain.

Personal residence is regarded as a capital asset but capital gains on the sale of it to the tune of $2,50,000 need not be reported and are exempt.

Rembrandt painting held in a private collection comprises of a capital asset since it represents an article of art, preserved since years and which would most likely realize a greater value upon disposal.

Equipment used in ordinary trade and business is not regarded as a capital asset as it is used in ordinary course of business.