What is the basis of the truck for determining depreciation

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Reference no: EM13863568

Tina owns a truck costing $20,000 and used for personal activities. The truck has a $9,600 FMV when it is transferred to her? business, which is operated as a sole proprietorship.

a) What is the basis of the truck for determining depreciation?

b) What is Tina?'s realized gain or loss if the truck is sold for $4,000 after claiming depreciation of $4,000??

Reference no: EM13863568

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