Proctor Inc.was incorporated in 2013 and adopted a calendar year.Here is a schedule of Proctor's net Section 1231 gains and (losses)reported on its tax returns through 2018. In 2019,Proctor recognized a $25,000 gain on the sale of business land.How is this gain characterized on Proctor's tax return?
A)$25,000 Section 1231 gain.
B)$19,700 ordinary gain and $5,300 Section 1231 gain.
C)$15,900 ordinary gain and $9,100 Section 1231 gain.
D)$25,000 ordinary gain.

Question

Proctor Inc.was incorporated in 2013 and adopted a calendar year.Here is a schedule of Proctor's net Section 1231 gains and (losses)reported on its tax returns through 2018.  In 2019,Proctor recognized a $25,000 gain on the sale of business land.How is this gain characterized on Proctor's tax return?
A)$25,000 Section 1231 gain. 
B)$19,700 ordinary gain and $5,300 Section 1231 gain. 
C)$15,900 ordinary gain and $9,100 Section 1231 gain. 
D)$25,000 ordinary gain.

Quizplus · Accepted Answer

The Answer of Proctor Inc.was incorporated in 2013 and adopted a calendar year.Here is a schedule of Proctor's net Section 1231 gains and (losses)reported on its tax returns through 2018.  In 2019,Proctor recognized a $25,000 gain on the sale of business land.How is this gain characterized on Proctor's tax return?
A)$25,000 Section 1231 gain. 
B)$19,700 ordinary gain and $5,300 Section 1231 gain. 
C)$15,900 ordinary gain and $9,100 Section 1231 gain. 
D)$25,000 ordinary gain.