Benjamin Has a $15,000 Section 1231 Gain from the Sale

question 17

Multiple Choice

Benjamin has a $15,000 Section 1231 gain from the sale of business-use real estate and a $3,500 long-term capital gain from the sale of Rhyne Corporation stock. Also, he suffers an $18,000 (net of insurance reimbursements and the $100 floor) personal-use property casualty loss. No net Section 1231 losses have been deducted as ordinary losses in prior years. Benjamin's current-year adjusted gross income will increase (decrease) by what amount?

• A)$500
• B)$3,500
• C)$15,000
• D)$15,800
• E)$18,500

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Definitions:

Alcoholism

A chronic disease characterized by uncontrolled drinking and a preoccupation with alcohol, also known as alcohol use disorder (AUD).

Antisocial

Pertaining to a pattern of behavior that disregards or violates the rights of others, often associated with antisocial personality disorder.

Substance Use Disorders

A condition characterized by an unhealthy dependence on drugs or alcohol leading to significant impairments.

Sociocultural

Relating to or involving the combination of social and cultural factors.