During the Current Year,George Recognizes a $30,000 Sec

question 22

Multiple Choice

During the current year,George recognizes a $30,000 Sec.1231 gain on sale of land and a $18,000 Sec.1231 loss on the sale of land.Prior to this,George's only Sec.1231 item was a $14,000 loss six years ago.George must report a

• A)$12,000 net LTCG.
• B)$12,000 ordinary income.
• C)$14,000 ordinary income.
• D)$10,000 ordinary income and $2,000 net LTCG.

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Definitions:

Occipital Lobe

Situated at the back part of the head, this brain region is dedicated to analyzing visual data.

Gray Matter

The darker-colored regions of the brain and spinal cord, consisting mainly of neuronal cell bodies and lacking myelin, involved in muscle control and sensory perception.

Capillaries

Capillaries are the smallest blood vessels in the body, responsible for the exchange of oxygen, carbon dioxide, and other nutrients and wastes between blood and tissues.

Frontal Lobe

The part of the brain located at the front of each cerebral hemisphere, responsible for voluntary movement, expressive language, and managing higher level executive functions.