Final answer:
The statement is False. The sale of the food truck to Michelle's father would be recorded at fair value, not as a loss.
Step-by-step explanation:
The statement is b) False. Michelle did not realize a $1,210 loss when she sold one of her food trucks to her father, a related person.
The reason for this is because when a related person purchases an asset from another related person, the transaction is considered a related party transaction. In this case, since Michelle is selling the food truck to her father, it is considered a related party transaction.
According to accounting rules, related party transactions are typically recorded at fair value. Therefore, the sale of the food truck would be recorded at its fair value, and any gain or loss would be recognized. In this case, since Michelle realized a loss, it would be recorded as a loss on the sale of the food truck.