Suppose Ms. Smith sells her 2018 Honda Fit next year. The original cost of the vehicle was $10,000. During the time she has owned the car she has taken $3,000 dollars of deprecation on it. Ms. Williams sells the car for $9,000. What is resul

The question is incomplete. Here is the complete question

Suppose Ms. Smith sells her 2018 Honda Fit next year. The original cost of the

vehicle was $10,000. During the time she has owned the car she has taken $3,000 dollars

of deprecation on it. Ms. Williams sells the car for $9,000. What is result of the transaction?

A. An ordinary loss of $1,000

B. Long-term capital gain of $2,000

C. An ordinary gain of $2,000

D. An ordinary gain of $6,000

An ordinary gain of $2,000

Explanation:

Ms. Smith wants to sell her 2018 Honda fit car next year

The original cost of the car is $10,000

She has incurred $3,000 worth of depreciation on it during the period that she has used the car

She sells the car for $9,000

Her transaction rate can be calculated as follows:

Net value of the car= $10,000-$3,000

= $7,000

Amount of gain realized while selling the car= $9,000-$7,000

= $2,000

Hence Ms. Smith has an ordinary gain of $2,000 after selling her car

answer; proclamation of 1763;