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

question 19

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 to 5, what amount of Ashburn's net §1231 gain for Year 6, if any, is treated as ordinary income?

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

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Definitions:

Activated Automatically

Processes or responses that occur without conscious control or effort.

Reduced Efficiency

A decline in the effectiveness or productivity of a process, system, or mechanism, often resulting in lower output or increased waste.

Bystander Effects

Phenomena in which individuals are less likely to offer help to a victim when other people are present.

Diffusion Of Responsibility

A psychological phenomenon where individuals are less likely to take action or feel a sense of responsibility in the presence of a large group of people.