During the Current Year,Kayla Recognizes a $40,000 Section 1231 Gain

question 36

Multiple Choice

During the current year,Kayla recognizes a $40,000 Section 1231 gain on sale of land and a $22,000 Section 1231 loss on the sale of land.Prior to this,Kayla's only Section 1231 item was a $10,000 loss six years ago.Kayla is in the 28% marginal tax bracket.The amount of tax resulting from these transactions is

• A)$2,700.
• B)$3,600.
• C)$4,000.
• D)$5,040.

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