Benlow Company, a calendar year taxpayer, sold two operating assets this year (each held for over a year). The first sale generated a $19,200 Section 1231 loss, and the second sale generated a $33,600 Section 1231 gain. As a result of these sales, Benlow should recognize:
A. $14,400 gain treated as capital gain.
B. $19,200 ordinary loss and $33,600 gain treated as capital gain.
C. $14,400 ordinary income.
D. None of the above
Answer: A
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