Sandra's Automobile, Which Is Used Exclusively in Her Trade or Business

question 39

Multiple Choice

Sandra's automobile, which is used exclusively in her trade or business, was damaged in an accident.The adjusted basis prior to the accident was $11,000.The fair market value before the accident was $10,000 and the fair market value after the accident is $6,000.Insurance proceeds of $3,200 are received.What is Sandra's adjusted basis for the automobile after the casualty?

• A)$0
• B)$7,000
• C)$7,800
• D)$10,200

Describe social judgment theory and its relevance to attitude change and persuasion.

Understand and apply the multi-attribute attitude model in analyzing consumer attitudes.

Explain the foot-in-the-door technique and its effectiveness in persuasion.

Apply balance theory to real-world marketing strategies involving endorsement and consumer relationships.

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Definitions:

Paid-in Capital

Funds received from investors during the issuance of stock, exceeding the par or stated value of the shares, also known as "contributed capital."

Legal Capital

The portion of a company's equity that cannot legally be distributed to shareholders, often equivalent to the par value of the shares.

SEC

Stands for the Securities and Exchange Commission, a U.S. government agency that oversees and enforces federal securities laws to protect investors and ensure market integrity.

Dividends

Distributions of earnings allocated by a company to its shareholders, often in the form of cash payments or additional shares.