During the Current Year, Danika Recognizes a $30,000 Sec

question 1721

Multiple Choice

During the current year, Danika recognizes a $30,000 Sec. 1231 gain and a $22,000 Sec. 1231 loss. Prior to this, Danika's only Sec. 1231 item was a $15,000 loss two years ago. Danika must report a(n)

• A) $8,000 ordinary income.
• B) $8,000 ordinary income and $7,000 net LTCG.
• C) $8,000 net LTCG.
• D) $15,000 ordinary income.

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Definitions:

Feedback Inhibition

is a regulatory mechanism where the output of a process inhibits the process itself, often used in metabolic pathways to maintain balance.

Metabolic Pathway

Series of enzyme-mediated reactions by which cells build, remodel, or break down an organic molecule.

Concentration Gradient

The gradual difference in the concentration of solutes in a solution between two regions.

Active Transport

The movement of substances across cell membranes against a concentration gradient, requiring energy input typically from ATP.