Rosilyn Trades Her Old Business-Use Car with an Adjusted Basis

question 24

Multiple Choice

Rosilyn trades her old business-use car with an adjusted basis of $13,000 and an outstanding loan liability balance of $2,000 for a new business-use car valued at $9,000 plus $3,000 cash from Bob's Auto Sales and Loan Company. Bob assumes Rosilyn's loan balance. What is Rosilyn's recognized gain on the transaction?

• A)$- 0 -
• B)$1,000
• C)$2,000
• D)$3,000
• E)$5,000

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Definitions:

Mnemonic Device

A strategy or technique that aids in remembering information, such as an acronym or rhyme.

Serial Reproduction

A process in psychology experiments where information is passed from one individual to another in a sequence, often resulting in the alteration of the information.

Typical Interference

Interruptions or distractions that commonly occur during a task, affecting the quality or efficiency of the task's completion.

Attentional Process

The mental activities involved in focusing on specific stimuli while ignoring others, critical in perceiving, thinking, and interacting with the environment.