Dana Purchases an Automobile for Personal Use for $27,000

question 74

Multiple Choice

Dana purchases an automobile for personal use for $27,000. After using it for three years, Dana converts the automobile to business use when the fair market value is $19,000. After a few months of business use, Dana sells the automobile for $18,000. What is the amount of gain or loss recognized on the sale of the automobile?

• A)No gain or loss
• B)$1,000 loss
• C)$8,000 loss
• D)$9,000 loss
• E)$8,000 gain

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Definitions:

Coordination

The organization of the different elements of a complex body or activity so as to enable them to work together effectively.

Material Resources

Tangible assets or physical goods that are needed for the production of services or goods, including machinery, buildings, and raw materials.

Human Resources

refers to the department within an organization that deals with the management, support, training, and development of its employees.

Organization

A structured group of individuals working together to achieve common goals or objectives, often characterized by a set hierarchy or operating system.