Ashburn Reported a $105,000 Net §1231 Gain in Year 6

question 76

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) $105,000.
• B) $45,000.
• C) $60,000.
• D) $0.
• E) None of the choices are correct.

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Definitions:

Oppressed Creature

An oppressed creature refers to an individual or group that experiences systematic injustices, limitations, and hardships imposed by dominant societal forces or governing bodies.

Opium

A narcotic drug extracted from the seed capsules of the poppy plant, used historically as a pain reliever and recreationally for its euphoric effects.

Profane

Elements of the everyday world that do not inspire or motivate.

Sacred

Describing something regarded with immense respect or worshipful veneration, often associated with religious or spiritual significance.