____ 23. Kem sells two personal use assets during the taxable year. A gain of $2
ID: 2580675 • Letter: #
Question
____ 23. Kem sells two personal use assets during the taxable year. A gain of $2,000 is realized on the sale of one asset and a loss of $7,000 is realized on the sale of the other asset. What is the recognized gain or loss?
a.
$1,000.
b.
$7,000.
c.
$2,000.
d.
($5,000).
e.
None of the above.
Instructions : Choose the best multiple choice answer and explain why you chose the answer. MUST provide 2-3 sentence brief explanation and show all work. All sources must be noted.
a.
$1,000.
b.
$7,000.
c.
$2,000.
d.
($5,000).
e.
None of the above.
Explanation / Answer
Recognized Gain / (Loss) :-
The Answer is "D".
Particulars Amount ($) Gain Recognize on First Asset 2000 Loss Recognize on Second Asset (7000) Overall Recognize Gain / (Loss) (5000)Related Questions
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