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

question 25

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

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