In 2010,Jim Had a $5,000 Net Section 1231 Gain

question 78

Multiple Choice

In 2010,Jim had a $5,000 net Section 1231 gain.In 2012,Jim reported a Section 1231 loss of $12,000.In 2013,Jim has a $15,000 net Section 1231 gain.He had no other sales of property in 2013.What is Jim's ordinary income from his 2013 property transactions?

• A)$ - 0 -
• B)$ 7,000
• C)$ 3,000
• D)$12,000
• E)$15,000

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Definitions:

Variable

An element, feature, or factor that is liable to vary or change; used in statistical analysis and experiments.

Output

The total amount of goods and services produced by an economy or a production process.

AFC

Average Fixed Cost (AFC) is the fixed costs of production (such as rent, salaries, machinery) divided by the quantity of output produced.

Fixed Costs

Costs that remain constant regardless of the level of production or output, such as rent, salaries, and loan repayments.