Katie Sells Her Personal Use Automobile for $12,000

question 213

Multiple Choice

Katie sells her personal use automobile for $12,000. She purchased the car three years ago for $25,000. What is Katie's recognized gain or loss?

• A) $0
• B) $12,000
• C) ($13,000)
• D) ($25,000)
• E) None of the above

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Definitions:

Decision Trees

A decision support tool that uses a tree-like model of decisions and their possible consequences, including chance event outcomes, resource costs, and utility.

Uncertainty of Demand

The unpredictability associated with the future demand for a product or service, making planning and forecasting challenging.

Flexible Production Capacity

The ability of a manufacturing process to adapt and respond to changes in demand by varying the amount of products produced without sacrificing efficiency or incurring significant costs.

Price

The amount of money required to purchase a product or service.