Webster, Who Owns All the Bear Corporation Stock, Purchases a Dump

question 75

Multiple Choice

Webster, who owns all the Bear Corporation stock, purchases a dump truck from Bear Corporation in January. The truck cost $12,000 and has a $10,000 adjusted basis at the time of the sale. Webster pays Bear the truck's $8,000 FMV. Later in the same year, Webster sells the dump truck to an unrelated party for $6,000. Webster can recognize a loss of

• A)$4,000.
• B)$2,000.
• C)$3,000.
• D)$5,000.

---

Definitions:

Adult Learning Cycle

A concept in educational theory that describes how adults learn in a cyclical process of experience, reflection, conceptualization, and application.

Reflecting

The process of deep thinking or pondering over experiences, ideas, or emotions to gain insights or understanding.

Teaching

The act or profession of imparting knowledge, skills, or beliefs, typically in an educational setting.

Multi-Tasking

The process of handling more than one task at the same time.