Pidgeon,Inc.has the following gains and losses from Section 1231 property during 2013:
$\begin{array}{lr}
\text {Casualy losses } &\$(4,000) \
\text {Casualty gains } &5,000 \
\text { Section 1231 gains } &6,000 \
\text { Section 1231 losses } &(3,000)
\end{array}$
No net Section 1231 losses have been deducted as ordinary losses in prior years.How much of the 2013 Section 1231 gains and losses are recognized as long-term capital gains?
A)$ - 0 -
B)$ 1,000
C)$ 3,000
D)$ 4,000
E)$ 6,000

Question

Pidgeon,Inc.has the following gains and losses from Section 1231 property during 2013:
$\begin{array}{lr}
\text {Casualy losses  } &\$(4,000) \
\text {Casualty gains  } &5,000 \
\text { Section 1231 gains } &6,000 \
\text { Section 1231 losses } &(3,000)
\end{array}$
No net Section 1231 losses have been deducted as ordinary losses in prior years.How much of the 2013 Section 1231 gains and losses are recognized as long-term capital gains?
A)$ - 0 -
B)$ 1,000
C)$ 3,000
D)$ 4,000
E)$ 6,000

Quizplus · Accepted Answer

The Answer of Pidgeon,Inc.has the following gains and losses from Section 1231 property during 2013:
$\begin{array}{lr}
\text {Casualy losses  } &\$(4,000) \
\text {Casualty gains  } &5,000 \
\text { Section 1231 gains } &6,000 \
\text { Section 1231 losses } &(3,000)
\end{array}$
No net Section 1231 losses have been deducted as ordinary losses in prior years.How much of the 2013 Section 1231 gains and losses are recognized as long-term capital gains?
A)$ - 0 -
B)$ 1,000
C)$ 3,000
D)$ 4,000
E)$ 6,000

Pidgeon,Inc No Net Section 1231 Losses Have Been Deducted as Ordinary