Rosilyn Trades Her Old Business-Use Car with an Adjusted Basis

question 31

Multiple Choice

Rosilyn trades her old business-use car with an adjusted basis of $13,000 and an outstanding loan liability balance of $2,000 for a new business-use car valued at $9,000 plus $3,000 cash from Bob's Auto Sales and Loan Company. Bob assumes Rosilyn's loan balance. What is Rosilyn's realized gain on the transaction?

• A)$- 0 -
• B)$1,000
• C)$2,000
• D)$3,000
• E)$5,000

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Definitions:

Sympathetic

Showing compassion, understanding, or concern towards others, often in situations where they are in distress.

Somatic

Somatic relates to the physical body as opposed to the mind, often used in contexts discussing bodily disorders without organic or physiological causes.

Autonomic

Relating to the autonomic nervous system, which controls involuntary body functions such as heartbeat and digestion.

Parasympathetic

The branch of the autonomic nervous system responsible for regulating the body's rest and digest functions, opposing the sympathetic system.