Trojan Inc

question 100

Multiple Choice

Trojan Inc.was incorporated in 2013.In 2013,it had no Section 1231 transactions.In 2014,Trojan had a net Section 1231 loss of $35,000.In 2015,Trojan had a Net Section 1231 gain of $10,000.In 2016 Trojan has a $50,000 net Section 1231 gain.Trojan should treat the 2016 gain as

• A)An ordinary gain of $40,000.
• B)A long-term capital gain of $50,000.
• C)An ordinary gain of $35,000 and a long-term capital gain of $15,000.
• D)An ordinary gain of $25,000 and a long-term capital gain of $25,000.
• E)An ordinary gain of $15,000 and a long-term capital gain of $35,000.

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Definitions:

Prostaglandins

A group of lipid compounds that have diverse hormone-like effects in animals, including mediating inflammation and pain.

Fructose

A simple sugar found in many plants, sweeter than glucose, and commonly used in the food industry, especially in fruits, honey, and high-fructose corn syrup.

Basic Fluid

A fluid with a pH above 7, indicating a lower concentration of hydrogen ions and often associated with alkalinity.

Mucus

A sticky secretion composed of covalently linked protein and carbohydrate; serves to lubricate body parts and trap particles of dirt and other contaminants. (The adjectival form is spelled mucous.)