Noelle Owns an Automobile Which She Uses for Personal Use

question 117

Multiple Choice

Noelle owns an automobile which she uses for personal use. Her adjusted basis is $45,000 (i.e., the original cost) . The car is worth $22,000. Which of the following statements is correct?

• A) If Noelle sells the car for $22,000, her realized loss of $23,000 is not recognized.
• B) If Noelle exchanges the car for another car worth $22,000, her realized loss of $23,000 is not recognized.
• C) If the car is stolen and it is uninsured, Noelle will not be able to recognize part of her realized loss of $23,000.
• D) Only a. and b. are correct.
• E) a., b., and c. are correct.

---

Definitions:

Simple Exponential Smoothing

A time series forecasting method for univariate data that considers the weighted sum of past observations, with the weights declining exponentially as the observations get older.

Previous Forecast

An estimation or prediction made in the past about future events or conditions, often used as a reference for current planning.

Four-month Moving Average

A method to smooth out data series by averaging the data over four-month periods, often used to identify trends.

Forecast for May

A predictive analysis or estimate of events or trends that will occur in May, often used in sales, marketing, or production planning.