During 2013,Myca Sells Her Car for $5,000

question 93

Multiple Choice

During 2013,Myca sells her car for $5,000.She acquired the car in 2009 for $11,000 and has used it 60% for business and 40% for personal use.She deducted $5,280 in depreciation.What is the taxable gain or loss from the sale of the car attributable to her business use?

• A)$3,680 gain
• B)$ 432 gain
• C)$ 720 loss
• D)$2,280 loss
• E)$1,680 gain

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Definitions:

Wages Expense

This is the total amount of money paid to employees for work performed during a specific period.

Payroll

The total amount of money paid by a business to its employees over a set period, including wages, salaries, bonuses, and deductions.

Retained Earnings

The portion of net income that is not distributed as dividends to shareholders but is kept by the company for reinvestment or to pay off debt.

Ledger Accounts

Record-keeping systems that track financial transactions through debits and credits to maintain the financial health and status of an entity.