Question: 1. During the current? year, Kayla recognizes a? $40,000 Sec. 1231 gain on sale of land and a? $22,000 Sec. 1231 loss on the sale

1. During the current? year, Kayla recognizes a? $40,000 Sec. 1231 gain on sale of land and a? $22,000 Sec. 1231 loss on the sale of land. Prior to? this, Kayla's only Sec. 1231 item was a? $10,000 loss six years ago. Kayla is in the? 28% marginal tax bracket. The amount of tax resulting from these transactions is

A. $6,500

B. $4,000

C. ?$2,500

D. ?$31,000

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