Vertical, Inc

question 55

Multiple Choice

Vertical, Inc., has a 2012 net § 1231 gain of $67,000 and had a $22,000 net § 1231 loss in 2011.For 2012, Vertical's net § 1231 gain is treated as:

• A)$45,000 long-term capital gain and $22,000 ordinary loss.
• B)$67,000 ordinary gain.
• C)$45,000 long-term capital gain and $22,000 ordinary gain.
• D)$67,000 capital gain.
• E)None of the above.