Kimmy Sells Her Personal Use Automobile for $19,000

question 179

Multiple Choice

Kimmy sells her personal use automobile for $19,000.She purchased the car three years ago for $35,000.What is Kimmy's recognized gain or loss?

• A)$0.
• B)$19,000.
• C)($16,000).
• D)($35,000).
• E)None of the above.

---

Definitions:

Discounted Present Value

The process of determining the present value of a future amount of money or stream of cash flows given a specified rate of return.

Additional Year's Employment

The extension of an employee's service period by one year, often affecting benefits and pension calculations.

ERISA

The Employee Retirement Income Security Act of 1974, a federal law that sets minimum standards for most voluntarily established pension and health plans in private industry to protect individuals in these plans.

Minimum Funding Requirements

Regulated benchmarks that pension plans or other forms of retirement funds must reach to ensure they have sufficient assets to meet future obligations.