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CTFA · Question #101

The loss in the value of an asset, such as an automobile, that occurs over its period of ownership; calculated as the difference between the price initially paid and the subsequent sale price.

The correct answer is A. Depreciation. See the full explanation below for the reasoning.

Taxation

Question

The loss in the value of an asset, such as an automobile, that occurs over its period of ownership; calculated as the difference between the price initially paid and the subsequent sale price.

Options

  • ADepreciation
  • BFranchise dealerships
  • CIndependent dealership car lots
  • DPrivate individuals

How the community answered

(36 responses)
  • A
    81% (29)
  • B
    6% (2)
  • C
    3% (1)
  • D
    11% (4)

Topics

#depreciation#asset value decline#automobile valuation#capital assets

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