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Ollie Owns a Personal Use Car for Which He Originally

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Ollie owns a personal use car for which he originally paid $48,000. He trades the car in on a sports utility vehicle (SUV) paying the automobile dealer cash of $30,000. If the negotiated price of the SUV is $49,000, what is Ollie's recognized gain or loss and his adjusted basis for the SUV?


Definitions:

Thermal Paste

Applied between the processor and its heat sink to provide a thermal pad that disperses heat more evenly.

Heat Sink

A component used in electronics and computers to dissipate heat away from devices, ensuring they operate within safe temperature limits.

CPU

Known as the Central Processing Unit, this crucial element of a computer handles the bulk of its computational processes.

eSATA

External Serial Advanced Technology Attachment, an extension of the SATA interface to connect external storage devices with high-speed capabilities.

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