Kim owns a truck costing $14,000 and used for personal activities. The truck has a $9,100 fair market value (FMV) when it is transferred to her business, which is operated as a sole proprietorship.
Requirements
a. What is the basis of the truck for determining depreciation?
b. What is Kim's realized gain or loss if the truck is sold for $10,000 after claiming depreciation of $8,000?