Noelle Owns an Automobile Which She Uses for Personal Use

question 70

Multiple Choice

Noelle owns an automobile which she uses for personal use.Her adjusted basis is $40,000 (i.e. ,the original cost) .The car is worth $24,000.Which of the following statements is correct?

• A)If Noelle sells the car for $24,000,her realized loss of $16,000 is not recognized.
• B)If Noelle exchanges the car for another car worth $24,000,her realized loss of $16,000 is not recognized.
• C)If the car is stolen and it is uninsured,Noelle may be able to recognize part of her realized loss of $24,000.
• D)Only a.and b.are correct.
• E)a. ,b. ,and c.are correct.

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Definitions:

Net Exports

The variance in a nation's total export value compared to its total import value.

Trade Surplus

An excess of exports over imports.

Net Capital Outflow

The difference between a nation's total exports of physical assets and its total imports of physical assets within a given period.

Domestic Assets

Assets located within a country's borders, including both tangible and intangible assets owned by residents or entities, and contributing to the national economic value.