Willie Sells the Following Assets and Realizes the Following Gains

question 83

Multiple Choice

Willie sells the following assets and realizes the following gains (losses) during the current year:
$\begin{array}{lr} \text {Personal auto } &\$(5,000) \\ \text {Municipal bonds } &(7,000) \\ \text { Stamp collection } &4,000 \\ \text { Furniture } &(6,000) \\ \text { 1 \% interest in oil well } &(8,000) \end{array}$
As a result of these sales,Willie's adjusted gross income will:

• A)Decrease by $ 3,000.
• B)Decrease by $ 4,000.
• C)Decrease by $11,000.
• D)Decrease by $15,000.
• E)Not change.

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Definitions:

Detonation

An uncontrolled, explosive ignition of fuel within an engine's cylinder after the spark plug has fired, often causing engine damage.

Circuit

In electricity, a path for electrons to flow from a source of higher electrical potential to a source of lower potential.

Timing Belt

A belt that synchronizes the rotation of the engine's crankshaft and camshaft, ensuring that the valves open and close at correct intervals.

Relative Compression Test

A quick way to identify a weak cylinder by cranking the engine with an inductive ammeter on the starter circuit. With a lab scope, cranking amperage can be graphed and correlated to a particular cylinder. A cylinder with low compression will draw fewer amps than a cylinder with higher compression, which will show on the graph.