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During the year, Kim sold the following assets: business auto for a $1,000 loss, stock investment for a $1,000 loss, and pleasure yacht for a $1,000 loss. Presuming adequate income, how much of these losses may Kim claim

Answer :

Kim can claim (A) $2,000.

What are assets?

  • In financial accounting, an asset is any resource that a corporation or economic organization owns or controls.
  • It is anything (tangible or immaterial) that can be utilized to generate positive economic value.
  • Assets indicate the worth of ownership that may be transformed into cash (although cash itself is also considered an asset).
  • A company's balance sheet details the monetary value of its assets.
  • It protects money and other assets belonging to an individual or a corporation.

To find how much Kim can claim:

  • The $1,000 loss on the business auto is an ordinary loss.
  • Whereas the $1,000 loss on the stock investment is a capital loss.
  • The $1,000 boat loss is personal and hence cannot be subtracted.

Therefore, Kim can claim (A) $2,000.

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The question you are looking for is given here:

During the year, Kim sold the following assets: business auto for a $1,000 loss, stock investment for a $1,000 loss, and pleasure yacht for a $1,000 loss. Presuming adequate income, how much of these losses may Kim claim?

a. $2,000

b. $1,000

c. $0

d. $3,000

e. None of these choices are correct.

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