During the Current Year,George Recognizes a $30,000 Section 1231 Gain

question 91

Multiple Choice

During the current year,George recognizes a $30,000 Section 1231 gain on sale of land and a $18,000 Section 1231 loss on the sale of land.Prior to this,George's only Section 1231 item was a $14,000 loss six years ago.George must report a

• A)$12,000 net LTCG.
• B)$12,000 ordinary income.
• C)$14,000 ordinary income.
• D)$10,000 ordinary income and $2,000 net LTCG.

---

Definitions:

Sale Price

The final amount at which a product or service is sold to consumers.

Marked Up

Refers to an increase in the selling price of goods or services, typically to create a profit margin above the cost.

Operating Expenses

Costs that a business incurs through its normal business operations, such as wages, rent, and utilities.

Wholesaler

A person or company that sells goods in large quantities at low prices, typically to retailers.