Buffey Operates a Delivery Service

question 5

Multiple Choice

Buffey operates a delivery service.She purchased a van in 2011 for $25,000,and she sold it in 2013 for $15,000.Buffey did not deduct any depreciation on the van from 2011 through 2013,although total allowable depreciation on the van would have been $17,000.What is the amount of Buffey 's recognized gain or loss on the sale of the van?

• A)$10,000 loss
• B)$ 7,000 gain
• C)$ 8,000 gain
• D)$15,000 gain
• E)$17,000 gain

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Definitions:

Value Chain

A set of activities that a company performs to create value for its customers, from product design to post-sale service.

Open Systems

Organizations or entities that interact with their environment by exchanging information, resources, and energy, adapting and responding to external changes.

Research-Based Facts

Information and findings derived from systematic inquiry into a subject, supported by empirical evidence.

Internal Clients

The individuals or departments within an organization that rely on the services or support of another within the same entity.