Verway, Inc

question 5

Multiple Choice

Verway, Inc., has a 2018 net § 1231 gain of $55,000 and had a $62,000 net § 1231 loss in 2016. For 2018, Verway's net § 1231 gain is treated as:

• A) $55,000 ordinary loss.
• B) $55,000 ordinary gain.
• C) $55,000 capital loss.
• D) $55,000 capital gain.
• E) None of the above.