1. Mary sells her personal use automobile for $25,000. She purchased the car two years ago for $32,000. What is Marys allowable loss deduction?

   		$12,000
   		$7,000
   		$3,000
   		zero
   		None of the above

QUESTION 67

1. All other things being equal, as closing inventory up gross profit goes down.

   True

   False

QUESTION 68

1. If John holds stock of Acme Corporation which increases in value by $4,000 during the tax year 2020, he will have to report a $4,000 gain realized on his tax return for the year 2020.

   True

   False