Question
Tina owns a truck costing $20,000 and used for personal activities. The truck has a $9,600 FMV when it is transferred to her business, which
Tina owns a truck costing $20,000 and used for personal activities. The truck has a $9,600 FMV when it is transferred to her business, which is operated as a sole proprietorship.
a) What is the basis of the truck for determining depreciation?
b) What is Tina's realized gain or loss if the truck is sold for $4,000 after claiming depreciation of $4,000?
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Principles Of External Auditing
Authors: Brenda Porter, Jon Simon, David Hatherly
2nd Edition
470842973, 470842970, 978-0470842973
