In its current tax year, PRS Corporation generated $300,000 ordinary income from the performance of consulting services for its clients. PRS sold two assets, recognizing a $20,000 gain on the first sale and a $31,000 loss on the second sale. Which of the following statements is false?
A. If the gain was capital gain and the loss was ordinary, PRS's taxable income was $269,000.
B. If the gain and loss were ordinary, PRS's taxable income was $289,000.
C. If the gain was ordinary and the loss was a capital loss, PRS's taxable income was $320,000.
D. If the gain and loss were capital gain and loss, PRS's taxable income was $300,000.
Answer: A
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