This Year Pranav Had the Gains and Losses Noted Below

question 78

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. $$\begin{array} {| l | r| } \hline\text { Gain due to insurance reimbursement for fire } & \$ 17,000 \\\hline \text { Loss due to condemnation } & ( 12,000 ) \\\hline \text { Gain on sale of Sec. 1231 property } & 21,000 \\\hline\end{array}$$ 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) \[\begin{array} {| r | r| }
• \hline \text { Ordinary gain (loss) } & \text { LTCG(L) } \\
• \hline \$ 6,00 \mathrm {~d} & \$ 20,00 \mathrm { l }\\\hline
• \end{array}\]

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Definitions:

Emotional Upset

A state of distress or disturbance in one's emotional equilibrium, often caused by external events or internal conflicts.

Physical Slowdown

A decrease in the speed or efficiency of bodily movements and functions, often due to aging, fatigue, or health issues.

Physical Exercise

Bodily activity that enhances or maintains physical fitness and overall health and wellness.

Memory

The cognitive function that allows us to encode, store, and retrieve information from the past.