This Year Pranav Had the Gains and Losses Noted Below

question 93

Multiple Choice

This year Pranav had the gains and losses noted below on property, plant and equipment used in his business. Each asset had been held longer than one year. $\begin{array}{|l|r|}\hline\text { Gain due to insurance reimbursement for fire } & \$ 17,000 \\\hline \text { Loss due to condemnation } & (12,000) \\\hline \text { Gain on sale of Sec. } 1231 \text { property } & 21,000\\\hline\end{array}$ A review of Pranav's reporting of Sec. 1231 transactions for the prior five years indicates a net Sec. 1231 loss of $14,000 three years ago and a net Sec. 1231 gain of $8,000 last year (before the five-year lookback) . Pranav will recognize

• A) \[\begin{array} { | r | r | }
• \hline \text { Ordinary gain (loss) } & \text { LTCG(L) } \\
• \hline \$ ( 6,000 ) & \$ 26,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | r | r | }
• \hline \text { Ordinary gain (loss) } & \text { LTCG(L) } \\
• \hline \$ ( 18,000 ) & \$ 38,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | r | r | }
• \hline \text { Ordinary gain (loss) } & \text { LTCG(L) } \\
• \hline \$ 0 & \$ 18,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | r | r | }
• \hline \text { Ordinary gain (loss) } & \text { LTCG(L) } \\
• \hline \$ 6,000 & \$ 20,000 \\
• \hline
• \end{array}\]

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Definitions:

Social Norms

Shared expectations and rules that guide behavior within a society or group, influencing how individuals act and interact.

Premarital Sex

Sexual activity engaged in by people before they are married.

Middle East

A geopolitical region centered on Western Asia and Egypt, characterized by its cultural, historical, and political significance.

Permissiveness With Affection

The standard in which premarital intercourse is viewed as permissible for both men and women if it occurs in the context of a long-term, committed, or loving relationship.