During 2017,Ester Recognizes a $10,000 Section 1231 Gain,a $25,000 Section

question 135

Multiple Choice

During 2017,Ester recognizes a $10,000 Section 1231 gain,a $25,000 Section 1231 loss,and ordinary income of $20,000.What are the results of Ester's netting of these items?

• A)$5,000 capital loss.
• B)$5,000 Section 1231 gain.
• C)$5,000 ordinary income.
• D)$17,000 ordinary income and $12,000 capital loss.
• E)$20,000 ordinary income and $15,000 capital loss.

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Definitions:

Fact Finding

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Substantial Evidence

Refers to evidence that a reasonable mind could accept as adequate to support a conclusion. It is defined as “more than a scintilla but less than preponderance” and consists of “such relevant evidence as a reasonable person would accept as adequate to support a conclusion.”

Upheld in Court

Upheld in court refers to a court's decision to confirm or support a previous ruling or judgment, maintaining its validity and enforcement.

Proposed Agency Rules

Preliminary regulations put forward by a government agency for review, comment, and eventual implementation to guide operations or ensure compliance.