On March 3, 2009, Craig bought a business-use vehicle for $20,000. He used the vehicle for three years and properly deducted a total of $12,000 as depreciation expense during this period. At the end of 2012, Craig sells the vehicle for $7, 500. Why is Craig's deductible loss $500? Craig has already recovered $ 12,000 of his investment through the depreciation deduction. The adjusted basis of the vehicle was $12,000 at the date of sale. $7, 500 of the adjusted basis was recovered because of the sale. The realized loss is recognized because it was incurred with business-use property. Statements I and III are correct Statements I, III and IV are correct Statements ll and III are correct only statement IV is correct statement I, II, III and IV are correct