34) During the current year, LaVone recognizes a $30,000 Sec. 1231 gain on sale of land and a $18,000 Sec. 1231 loss on the sale of land. Prior to this, LaVone's only Sec. 1231 item was a $14,000 loss six years ago. LaVone must report a

A) $12,000 net LTCG.

B) $12,000 ordinary income.

C) $14,000 ordinary income.

D) $10,000 ordinary income and $2,000 net LTCG.

35) Sec. 1231 property will generally have all the following characteristics except

A) real or depreciable property.

B) used in trade or business.

C) held for sale to customers.

D) held for more than one year.

36) During the current year, Hugo sells equipment for $150,000. The equipment cost $175,000 when placed in service two years ago, and $55,000 of depreciation deductions were allowed. The results of the sale are

A) LTCG of $30,000.

B) Sec. 1231 gain of $30,000.

C) Sec. 1245 ordinary income $30,000.

D) Sec. 1250 ordinary income of $30,000.