Jake sold his car for $2,400 in cash this year. He will realize a taxable gain of $1,000 if he purchased the car for $1,400.

Name: Jake sold his car for $2,400 in cash this year. He will realize a taxable gain of $1,000 if he purchased the car for $1,400.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

To calculate the taxable gain, subtract the original purchase price from the selling price: $2,400 - $1,400 = $1,000. Since this result is positive, Jake will have a taxable gain of $1,000. Therefore, option A is true.

Jake Sold His Car for $2,400 in Cash This Year