Corporation Q, a calendar year taxpayer, has incurred the following Section 1231 net gains and losses since its formation in 2015.

a. In 2018, Corporation Q sold only one asset and recognized a $4,000 Section 1231 gain. How much of this gain is treated as capital gain, and how much is ordinary?

b. In 2019, Corporation Q recognized a $16,700 Section 1231 gain on the sale of one asset and a $2,000 Section 1231 loss on the sale of a second asset. How much of the $14,700 net gain is treated as capital gain, and how much is ordinary?

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2016 2017 2015 $ 5,700 Section 1231 gains $14,800 -0- (13,000) Section 1231 losses (9,000) $(3,100) $ 1,800 Net gain or (loss) $(3,300) $(3,100)