An Individual Has the Following Recognized Gains and Losses from Disposition

question 26

Multiple Choice

An individual has the following recognized gains and losses from disposition of § 1231 assets (all were vacant land) : $15,000 gain, $10,000 loss, $25,000 gain, and $2,000 loss.The individual has a $5,500 § 1231 lookback loss.The individual also has a $16,000 net short-term capital loss from the disposition of stock.Which of the following statements is correct?

• A)The taxpayer has $5,500 ordinary gain and $6,500 net long-term capital gain.
• B)The taxpayer has $12,000 net long-term capital gain.
• C)The taxpayer has $28,000 ordinary gain and $16,000 net short-term capital loss.
• D)The taxpayer has $5,500 ordinary loss and $6,500 net long-term capital gain.
• E)None of these.

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