Rosilyn trades her old business-use car with an adjusted basis of $13,000 and an outstanding loan liability balance of $2,000 for a new business-use car valued at $9,000 plus $3,000 cash from Bob's Auto Sales and Loan Company. Bob assumes Rosilyn's loan balance. What is Rosilyn's basis in her new car?
A)$- 0 -
B)$9,000
C)$11,000
D)$12,000
E)$14,000

Question

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The Answer of Rosilyn trades her old business-use car with an adjusted basis of $13,000 and an outstanding loan liability balance of $2,000 for a new business-use car valued at $9,000 plus $3,000 cash from Bob's Auto Sales and Loan Company. Bob assumes Rosilyn's loan balance. What is Rosilyn's basis in her new car?
A)$- 0 -
B)$9,000
C)$11,000
D)$12,000
E)$14,000

Rosilyn Trades Her Old Business-Use Car with an Adjusted Basis