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

Question 67

Multiple Choice

Pidgeon, Inc. has the following gains and losses from Section 1231 property during 2018:
?
 Casualty losses $(4,000)  Casualty gains 5,000 Section 1231 gains 6,000 Section 1231 losses (3,000) \begin{array} { l c } \text { Casualty losses } & \$ ( 4,000 ) \\\text { Casualty gains } & 5,000 \\\text { Section } 1231 \text { gains } & 6,000 \\\text { Section } 1231 \text { losses } & ( 3,000 ) \end{array}
No net Section 1231 losses have been deducted as ordinary losses in prior years. How much of the 2018 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

Correct Answer:

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