Roger Owns 65% of Silver Trucking, a Partnership

question 43

Multiple Choice

Roger owns 65% of Silver Trucking, a partnership. During the current year, Roger sells a truck with an adjusted basis of $30,000 to Silver for $20,000.
I.Silver's basis in the truck is $30,000.
II.Roger can deduct the $10,000 loss on the sale of the truck.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Estimated Total

A projected computation or guess of the final amount or value.

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting used in any given jurisdiction.

Completed Contract Method

An accounting technique used to defer all revenue, expense, and profit recognition until a contract is completed.

Accounting

The systematic recording, reporting, and analysis of financial transactions of a business.