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Sara Owns an Automobile for Personal Use

Question 102

Short Answer

Sara owns an automobile for personal use.The adjusted basis is $13,500 and the FMV is $10,500.Sara has owned the car for two years.
a.Calculate the realized gain (loss)if Sara sells the vehicle for $12,500.
b.Calculate the recognized gain (loss)if Sara sells the vehicle for $12,500.
c.Calculate the realized gain (loss)if Sara sells the vehicle for $15,000.
d.Calculate the recognized gain (loss)if Sara sells the vehicle for $15,000.

Correct Answer:

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a.($1,000)...

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