Which of the following accurately describes an ordinary asset?

An ordinary asset is primarily characterized by its use in a trade or business that helps generate ordinary income. These assets are typically involved in the operations of a business and can include items like inventory, supplies, and equipment. The key aspect that makes an asset ordinary is that it plays a role in the day-to-day functions of the business and is directly related to the production of income as part of the business’s regular activities.

In contrast, other types of assets such as non-tangible assets that do not produce income or certain types of investment properties, do not fit the definition of ordinary assets due to their lack of direct involvement in the active operations of a business. While ownership of real estate can apply to ordinary assets under certain conditions, not all real estate is necessarily tied to generating ordinary income, especially if it is held purely as an investment. Therefore, C is the most accurate description as it encapsulates the essence of what defines ordinary assets in the context of tax considerations and income generation.