Joan Purchases a Beautiful Rug for $25,000

question 102

Multiple Choice

Joan purchases a beautiful rug for $25,000. After several years of wear and tear, Joan has the rug appraised and finds that it is now worth only $20,000. Based on this information:

• A)Joan's saving this year has increased by $5,000.
• B)Joan has a $5,000 capital gain.
• C)Joan has a $5,000 capital loss.
• D)Joan's wealth is unchanged.

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