Kim Owns a Truck That Cost $35,000 Several Years Ago

Multiple Choice

Kim owns a truck that cost $35,000 several years ago. After using it personally for two years, she converts the truck to business use when the truck's fair market value is $20,000. She uses the truck in her business and appropriately deducts $5,000 in depreciation. Then, she sells the truck for $42,000. What is Kim's recognized gain or loss on the sale?

A) No gain or loss
B) $12,000 gain
C) $27,000 gain
D) $32,000 gain
E) $ 7,000 gain