Hank Hands Owns a Sole Proprietorship That Charters Various Types

question 32

Multiple Choice

Hank Hands owns a sole proprietorship that charters various types of aircraft. Hank exchanged a helicopter with an adjusted basis of $156,000 used in his business for a smaller helicopter with a value of $142,000. On the exchange, Hank was relieved of an existing loan of $10,000 on the original helicopter and received $4,000 in cash. What is Hank's gain or loss on the trade?

• A) ($14,000)
• B) $0
• C) $4,000
• D) $10,000
• E) $14,000

---

Definitions:

Full-duplex Transmission

A mode of communication that allows data to be transmitted simultaneously in both directions on a signal carrier, enabling two-way communication at the same time.

Both Directions

A term typically used in communications and data transfer indicating that transmission can occur to and from two endpoints or devices.

Data Rate

The speed at which data is transmitted, usually measured in bits per second (bps).