Hank Realizes Section 1231 Losses of $12,000 and Section 1231

question 88

Multiple Choice

Hank realizes Section 1231 losses of $12,000 and Section 1231 gains of $7,000 during the current year. Hank's current-year adjusted gross income will increase (decrease) by what amount?

• A)$(12,000)
• B)$(5,000)
• C)$(3,000)
• D)$7,000

---

Definitions:

Natural Processes

The natural operations or phenomena occurring in the physical world, often without human intervention.

War Powers Resolution

A federal law intended to check the U.S. President's power to commit the United States to armed conflict without the consent of Congress.

Commander-in-Chief

The title given to the person who holds supreme command over the armed forces of a nation; in the United States, this position is held by the President.

Armed Forces

The military forces of a country, including the army, navy, air force, and sometimes others, responsible for defense and security.