Pidgeon,Inc No Net Section 1231 Losses Have Been Deducted as Ordinary

question 19

Multiple Choice

Pidgeon,Inc.has the following gains and losses from Section 1231 property during 2013:
$\begin{array}{lr}\text {Casualy losses } &\$(4,000) \\\text {Casualty gains } &5,000 \\\text { Section 1231 gains } &6,000 \\\text { Section 1231 losses } &(3,000) \end{array}$
No net Section 1231 losses have been deducted as ordinary losses in prior years.How much of the 2013 Section 1231 gains and losses are recognized as long-term capital gains?

• A)$ - 0 -
• B)$ 1,000
• C)$ 3,000
• D)$ 4,000
• E)$ 6,000

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