Warren's 2019 adjusted gross income consists of the following items:
Salary$150,000
Interest income15,000
Rental income18,000
Section 1245 gains25,000
Section 1231 gains22,000
Section 1231 losses(13,000)
LTCG22,000
LTCL(8,000)
STCG2,000
STCL Carryover(9,000)
?
Warren's combined Section 1231 gains and losses recognized over the prior five tax years included a net loss of $10,000. The STCL carryover arose from a loss reported in 2014.What net amounts of ordinary income, LTCG income, and STCG income will Warren's 2019 adjusted gross income consist of (i.e., what amounts are reported after completing the netting process)? Ordinary Income LTCG STCG
A. $208,000 $16,000 $- 0 -
B. $217,000 $14,000 $(7,000)
C. $208,000 $23,000 $(7,000)
D. $217,000 $7,000 $- 0 -
Answer: D
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