Ramona recognizes a $50,000 Section 1231 loss, a $30,000 Section 1231 gain, and ordinary income of $35,000 in 2018. Before 2018, Ramona's only Section 1231 transaction was a $15,000 loss reported in 2014. How should Ramona report her 2018 transactions?
A)$20,000 capital loss and $35,000 ordinary income.
B)$15,000 net Section 1231 gain.
C)$15,000 capital loss.
D)$15,000 ordinary income.
E)$15,000 capital gain.

Question

Quizplus · Accepted Answer

The Answer of Ramona recognizes a $50,000 Section 1231 loss, a $30,000 Section 1231 gain, and ordinary income of $35,000 in 2018. Before 2018, Ramona's only Section 1231 transaction was a $15,000 loss reported in 2014. How should Ramona report her 2018 transactions?
A)$20,000 capital loss and $35,000 ordinary income.
B)$15,000 net Section 1231 gain.
C)$15,000 capital loss.
D)$15,000 ordinary income.
E)$15,000 capital gain.

Ramona Recognizes a $50,000 Section 1231 Loss, a $30,000 Section