What is estelle basis in truck for calculating depreciation


Question: Estelle owns a pickup truck costing $16,000 that she uses in her personal activities. The truck had a $10,000 FMV when it was transferred to Estelle's business, which she operates as a sole proprietorship.

Q1. What is Estelle's basis in the truck for calculating depreciation?

Q2. What is Estelle's realized gain or loss on the truck if she sells it for $5,000 after claiming depreciation of $4,500?

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Accounting Basics: What is estelle basis in truck for calculating depreciation
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