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:

Past Participle

A grammatical form of a verb used to indicate a past or completed action or condition, often ending in -ed or -en in English.

Rare Plant Species

Plant species that are uncommon or scarce in their natural habitat, often due to environmental changes or human activities.

Human Needs

Fundamental requirements necessary for individuals to sustain a healthy and adequate life, including physiological, safety, love/belonging, esteem, and self-actualization needs.

Correct Helping Verb

A verb that helps another verb to express tense, mood, or voice, and must agree in number and person with the main verb.