Question: ) 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

) 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.

Please give the necessary description for my quick understanding!

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