Question
Estelle owns a pickup truck costing $16,000 that she uses in her personal activities. The truck had a $10,000 FMV when it was transferred to
Estelle owns a pickup truck costing $16,000 that she uses in her personal activities. The truck had a $10,000 FMV when it was transferred to Estelle’s business, which she operates as a sole proprietorship.
a. What is Estelle’s basis in the truck for calculating depreciation?
b. What is Estelle’s realized gain or loss on the truck if she sells it for $5,000 after claiming depreciation of $4,500?
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Fundamentals Of Taxation 2019
Authors: Ana M. Cruz Dr., Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler, Jinhee Trone
12th Edition
1260091880, 1260091885, 1260158675, 978-1260158670
