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

question 89

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 these.

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Definitions:

Teachers

Educators responsible for facilitating learning, providing academic instruction, and fostering social and personal development.

Cognitive Theorist

A psychologist or researcher who studies the mental processes involved in knowing, including aspects like perception, thinking, memory, and judgment.

Mental Representation

The mental imagery of things that are not currently seen or sensed by the sense organs; in other words, the ability of the mind to hold, process, or project images and ideas internally.

Developmental Crises

Periods of significant disruption or challenge during the process of growth that require an individual to adapt or face potential setbacks in development.