Ashburn Reported a $104,875 Net §1231 Gain in Year 6

question 21

Multiple Choice

Ashburn reported a $104,875 net §1231 gain in Year 6. Assuming Ashburn reported $52,500 of nonrecaptured §1231 losses during Years 1 to 5, what amount of Ashburn's net §1231 gain for Year 6, if any, is treated as ordinary income?

• A)$0.
• B)$52,375.
• C)$52,500.
• D)$104,875.
• E)None of the choices are correct.

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Definitions:

Self-efficacy

A person's confidence in their own capacities to achieve success in particular circumstances or complete a given task.

Written Communication

The process of conveying messages or information through letters, emails, reports, or other types of written documents.

Agreeableness

A personality trait part of the Big Five personality factors, characterized by traits of compassion, cooperation, and a harmonious disposition towards others.

Extraversion

A personality trait characterized by outgoingness, high levels of sociability, and an energetic approach to the external world.