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

question 127

Multiple Choice

Fillmore's net Section 1231 gains and losses reported for the past five years is presented below.
?
$$\begin{array} { r r } 2013 & \$ 15,000 \\2014 & 12,000 \\2015 & 5,000 \\2016 & ( 28,000 ) \\2017 & ( 13,000 ) \end{array}$$
In 2018, Fillmore has a $15,000 net Section 1231 gain. What amounts and character of income will Fillmore ultimately report in 2018 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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