Irene owns a truck costing $$15,000$ and used for personal activities. The truck has a $$9,600$ fair market value $($FMV$)$ when it is transferred to her business, which is operated as a sole proprietorship.

Requirements

a$.$ What is the basis of the truck for determining depreciation?

b$.$ What is Irene's realized gain or loss if the truck is sold for $$5,000$ after claiming depreciation of $$4,000?$

Requirement a$.$ What is the basis of the truck for determining depreciation?

The basis of the truck for determining depreciation is

Requirement b$.$ What is Irene's realized gain or loss if the truck is sold for $$5,000$ after claiming depreciation of $$4,000?($Use parentheses or a minus sign to enter a loss.$)$

Irene will realize a gain or loss of