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??