👉 In the context of business and finance, a nonmerchantable asset is an item or asset that cannot be sold for more than its cost basis. In other words, it is an unprofitable or underperforming asset that does not meet the criteria for sale to another party as part of a transaction. Examples of nonmerchantable assets include inventory, equipment, property, and goodwill. Nonmerchantable assets can have negative cash flows if they are sold at a loss, which can lead to a
