Nilex Company sold three operating assets this year. Nilex recognized a $14,100 Section 1231 loss on the first sale, a $20,000 Section 1231 loss on the second sale, and a $19,600 Section 1231 gain on the third sale. Which of the following statements is true?
A. Nilex can deduct its $34,100 net Section 1231 loss and can treat its $19,600 Section 1231 gain as a capital gain.
B. Nilex must treat its $14,500 net Section 1231 loss as a capital loss.
C. Nilex can deduct its $14,500 net Section 1231 loss.
D. None of the above statements is true.
Answer: C
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Fill in the blank(s) with the appropriate word(s).
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