Dana Purchases an Automobile for Personal Use for $27,000

Multiple Choice

Dana purchases an automobile for personal use for $27,000. After using it for three years, Dana converts the automobile to business use when the fair market value is $19,000. After a few months of business use, Dana sells the automobile for $18,000. What is the amount of gain or loss recognized on the sale of the automobile?

A) No gain or loss
B) $1,000 loss
C) $8,000 loss
D) $9,000 loss
E) $8,000 gain