In 2015, Jim Had a $5,000 Net Section 1231 Gain

question 47

Multiple Choice

In 2015, Jim had a $5,000 net Section 1231 gain. In 2017, Jim reported a Section 1231 loss of $12,000. In 2018, Jim has a $15,000 net Section 1231 gain. He had no other sales of property in 2018. What is Jim's ordinary income from his 2018 property transactions?

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

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Definitions:

Capillaries

The smallest blood vessels in the body, responsible for the exchange of various substances between the blood and surrounding tissues.

Gases

States of matter consisting of particles that have neither a defined volume nor shape, expanding to fill their container.

Exhalation

The process of releasing air from the lungs through the respiratory tract; a key part of the breathing cycle in aerobic respiration.

Bronchi

The main passageways directly attached to the lungs that allow the passage of air in and out of the lungs.