Trojan Inc

question 86

Multiple Choice

Trojan Inc.was incorporated in 2010.In 2010,it had no Section 1231 transactions.In 2011,Trojan had a net Section 1231 loss of $35,000.In 2012,Trojan had a Net Section 1231 gain of $10,000.In 2013 Trojan has a $50,000 net Section 1231 gain.Trojan should treat the 2013 gain as

• A)An ordinary gain of $40,000.
• B)A long-term capital gain of $50,000.
• C)An ordinary gain of $35,000 and a long-term capital gain of $15,000.
• D)An ordinary gain of $25,000 and a long-term capital gain of $25,000.
• E)An ordinary gain of $15,000 and a long-term capital gain of $35,000.

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Definitions:

Chromosomes

Structures within cells that contain DNA and genetic information critical for reproduction, functioning, and growth.

Red Blood Cells

Cells in the blood that carry oxygen from the lungs to all parts of the body and return carbon dioxide to the lungs for exhalation.

Transporting Oxygen

The primary function of the respiratory and circulatory systems, allowing oxygen to be inhaled into the lungs, carried by red blood cells, and delivered to tissue.

Tissue Cells

The basic structural and functional units of tissues in living organisms, varying widely in structure and function based on their location and task.