Benjamin has a $15,000 Section 1231 gain from the sale of business use real estate and a $3,500 long-term capital gain from the sale of Rhyne Corporation stock. Also, he suffers an $18,000 (net of insurance reimbursements and the $100 floor) personal use property casualty loss. No net Section 1231 losses have been deducted as ordinary losses in prior years. By what amount will Benjamin's current-year adjusted gross income increase (decrease)?
A. $500
B. $3,500
C. $15,000
D. $15,800
E. $18,500
Answer: E
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