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.

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