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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