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:

Hue

Describes a color or shade, highlighting the aspect of color that is determined by the wavelength of light.

Wavelength

The distance between successive peaks of a wave, often used in the context of electromagnetic waves like light or sound.

Intensity

The degree of strength, power, or force of something, often related to sensations, feelings, or signals.

Blind Spot

An area in the visual field that lacks detection of light due to the absence of receptor cells on the optic disc of the retina.