Fillmore's Net Section 1231 Gains and Losses Reported for the Past

question 133

Multiple Choice

Fillmore's net Section 1231 gains and losses reported for the past five years is presented below. ​
In 2016,Fillmore has a $15,000 net Section 1231 gain.What amounts and character of income will Fillmore ultimately report in 2016 as a result of this net Section 1231 gain?

• A)$6,000 LTCG; $9,000 ordinary income
• B)$15,000 ordinary income
• C)$15,000 Section 1231 gain
• D)$9,000 LTCG; $6,000 ordinary income
• E)None of the above.

---

Definitions:

Photoreceptors

Specialized cells located in the retina of the eye that convert light into electrical signals, enabling vision.

Penlight

A small, lightweight flashlight used in medical examinations to check patients' pupil response or throat.

Mechanoreceptors

Sensory receptors in the body that respond to mechanical pressures or distortions, such as touch, pressure, stretch, and vibration.

Chemoreceptors

Sensory receptors that respond to chemical stimuli, found in various locations in the body and involved in processes like taste, smell, and respiratory control.