Which of the Following Best Describes the Tax Treatment of a Taxpayer's

Which of the following best describes the tax treatment of a taxpayer's net Section 1231 loss that resulted from the sale of depreciable equipment used in a business activity?

A) Such losses are not deductible.
B) Such losses are deducted as ordinary losses.
C) Such losses are deducted as long-term capital losses.
D) Such losses are deductible as short-term capital losses.
E) Such losses are deducted as ordinary losses only to the extent that the business activity produces other ordinary net income.