Question

Mike purchased a 1968 Chevy Corvette in 2009 for $30,000 and a year later he sold it for $36,000. Due to these transactions..."

a. He experienced a loss.
b. He experienced a gain.
c. There was no change in his wealth.
d. He experienced depreciation.

Answer 1

The correct answer is b. He experienced a gain.

Step-by-step explanation:

The correct answer is b. He experienced a gain.

In this scenario, Mike purchased a 1968 Chevy Corvette for $30,000 and sold it a year later for $36,000. Since he sold it for a higher price than what he paid, he made a profit or gained money.