Ryan exchanged a car that he used in his business for the past 3 years...
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Accounting
Ryan exchanged a car that he used in his business for the past 3 years for a new truck with a FMV of $25,000. This transaction took place at the end of the year. The adjusted basis of the car was $8,000 at the beginning of the year of disposition. Ryan paid $4,000 cash and assumed a note payable of $10,000 to be paid in $2,000 increments over the next 5 years. Ryans depreciation on the car for the year of disposition was $2,500. What is the gain (loss) recognized on the transaction?
$3,000 gain.
$5,500 gain.
$11,000 gain.
$15,500 gain.
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