Mary Sells Her Personal Use Automobile for $20,000

question 249

Multiple Choice

Mary sells her personal use automobile for $20,000. She purchased the car two years ago for $17,000. What is Mary's recognized gain or loss? It increased in value due to its excellent mileage, yet safe design.

• A) $0
• B) $3,000
• C) $17,000
• D) $20,000
• E) None of the above

---

Definitions:

Fontanels

Soft spots on a baby's head where the skull bones have not yet fused, allowing for growth of the brain and skull.

Sutures

Fibrous joints between the bones of the skull that allow for growth during infancy and fuse later in life.

Foramina

Natural openings or passages, especially in bones, through which nerves, blood vessels, ligaments, and other structures can pass.

Cranial Bones

The bones that form the skull, protecting the brain and supporting the structures of the face.