Nilex Company Sold Three Operating Assets This Year

Nilex Company sold three operating assets this year. Nilex recognized a $14,100 Section 1231 loss on the first sale, a $20,000 Section 1231 loss on the second sale, and a $19,600 Section 1231 gain on the third sale. Which of the following statements is true?

A) Nilex can deduct its $14,500 net Section 1231 loss.
B) Nilex can deduct its $34,100 net Section 1231 loss and can treat its $19,600 Section 1231 gain as a capital gain.
C) Nilex must treat its $14,500 net Section 1231 loss as a capital loss.
D) None of these statements are true.