Ashburn Reported a $105,000 Net §1231 Gain in Year 6

question 19

Multiple Choice

Ashburn reported a $105,000 net §1231 gain in Year 6.Assuming Ashburn reported $60,000 of nonrecaptured §1231 losses during Years 1-5, what amount of Ashburn's net §1231 gain for Year 6, if any, is treated as ordinary income?

• A)$0.
• B)$45,000.
• C)$60,000.
• D)$105,000.
• E)None of the choices are correct.

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Definitions:

Medical Supplies

Items and materials used in healthcare settings, including syringes, bandages, gloves, and medicines.

Flexible Budget

An adaptable budget that shifts in response to changes in the amount of activity or volume.

Net Operating Income

A financial metric that calculates a company’s income after operating expenses are subtracted but before interest and taxes are deducted.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels of the business, allowing for more accurate financial planning.