Fillmore's Net Section 1231 Gains and Losses Reported for the Past

question 112

Multiple Choice

Fillmore's net Section 1231 gains and losses reported for the past five years is presented below.
$$\begin{array} { r r } 2008 & \$ 15,000 \\2009 & 12,000 \\2010 & 5,000 \\2011 & ( 28,000 ) \\2012 & ( 13,000 ) \end{array}$$
In 2013,Fillmore has a $15,000 net Section 1231 gain.What amounts and character of income will Fillmore ultimately report in 2013 as a result of this net Section 1231 gain?

• A)$ 6,000 LTCG; $9,000 ordinary income
• B)$15,000 ordinary income
• C)$15,000 Section 1231 gain
• D)$ 9,000 LTCG; $6,000 ordinary income
• E)None of the above.

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