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Stephanie purchased two cars, a Toyota Camry and a Honda Accord, for personal use. The Toyota Camry had an adjusted basis of $35,000, and the
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Stephanie purchased two cars, a Toyota Camry and a Honda Accord, for personal use. The Toyota Camry had an adjusted basis of $35,000, and the Honda Accord had an adjusted basis of $15,000. Stephanie sold the Camry for $50,000 and the Accord for $10,000. What gain or loss should Stephanie recognize on the sales of the automobiles?
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Camry, gain of $0; Accord, loss of $0.
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Camry, gain of $15,000; Accord, loss of $0.
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Camry, gain of $5,000; Accord, loss of $5,000.
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Camry, gain of $0; Accord, loss of $5,000
Stephanie purchased two cars, a Toyota Camry and a Honda Accord, for personal use. The Toyota Camry had an adjusted basis of $35,000, and the Honda Accord had an adjusted basis of $15,000. Stephanie sold the Camry for $50,000 and the Accord for $10,000. What gain or loss should Stephanie recognize on the sales of the automobiles?
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Camry, gain of $0; Accord, loss of $0.
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Camry, gain of $15,000; Accord, loss of $0.
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Camry, gain of $5,000; Accord, loss of $5,000.
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Camry, gain of $0; Accord, loss of $5,000
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