Hank Realizes Section 1231 Losses of $12,000 and Section 1231

question 88

Multiple Choice

Hank realizes Section 1231 losses of $12,000 and Section 1231 gains of $7,000 during the current year. Hank's current-year adjusted gross income will increase (decrease) by what amount?

• A)$(12,000)
• B)$(5,000)
• C)$(3,000)
• D)$7,000

---

Definitions:

Entrepreneur

An individual who starts, organizes, manages, and assumes the risks of a business or enterprise.

Small Companies

Organizations with a limited number of employees and revenue, often characterized by a narrow market focus.

Microloans

Small-business loans often used to buy equipment or operate a business.