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.

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