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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Definitions:

Legal Title

A formal recognition or designation that establishes ownership or an official position within a legal framework.

Preliminary Emancipation Proclamation

An executive order issued by President Abraham Lincoln in 1862 during the American Civil War that declared the freedom of all enslaved people in Confederate-held territory starting January 1, 1863.

Union Victory

The success of the United States (the Union) over the Confederate States in the American Civil War, leading to the preservation of the Union and the abolition of slavery.

Antietam

The site of a decisive battle during the American Civil War in September 1862, known as the bloodiest single-day battle in American history.