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

question 822

Multiple Choice

During the current year, George recognizes a $30,000 Sec. 1231 gain on sale of land and a $18,000 Sec. 1231 loss on the sale of land. Prior to this, George's only Sec. 1231 item was a $14,000 loss six years ago. George must report a

• A) $10,000 ordinary income and $2,000 net LTCG.
• B) $14,000 ordinary income.
• C) $12,000 ordinary income.
• D) $12,000 net LTCG.

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Definitions:

Inflation

The tempo of growth in global prices for products and services, diluting consumer spending ability.

World Price of Oil

The universally recognized current price at which a barrel of oil can be bought or sold for immediate delivery across global markets.

Aggregate-supply Curve

A curve showing the total quantity of goods and services that producers in an economy are willing to supply at various price levels.

Phillips Curve

A concept in economics that demonstrates an inverse relationship between the rate of unemployment and the rate of inflation.