Blake, a sole proprietor, is selling several business assets. He has been told by a friend that the items he is selling are not capital assets and are subject to the ordinary income tax rate. You are his financial planner and tell him that the gains on Section 1231 assets can be treated as capital gains for income tax purposes subject to certain rules. Which of the assets Blake sold are Section 1231 assets?
1) A copyright on the theme song Blake's company uses in its advertising that Blake wrote
2) The building and land sold when Blake's business moved to a new location
3) Blake's inventory of electric guitars his business manufactures
4) Accounts receivable