During 2018, Ester Recognizes a $10,000 Section 1231 Gain, a $25,000

question 108

Multiple Choice

During 2018, Ester recognizes a $10,000 Section 1231 gain, a $25,000 Section 1231 loss, and ordinary income of $20,000. What are the results of Ester's netting of these items?

• A)$5,000 capital loss.
• B)$5,000 Section 1231 gain.
• C)$5,000 ordinary income.
• D)$17,000 ordinary income and $12,000 capital loss.
• E)$20,000 ordinary income and $15,000 capital loss.

---

Definitions:

Routine Problem Solving

A straightforward process used for addressing problems that occur regularly and have established and predictable solutions.

Apartment Building

A multi-unit housing structure where individuals or families reside in separate compartments but share common areas.

Home Depot

An American home improvement retail chain that supplies tools, construction products, and services.

High-Involvement Purchases

Buying decisions that are significant to the consumer, often associated with considerable expenditure and extensive pre-purchase research.