Question: In the current year, Alan reported a $104,950 net 1231 gain and a $4,000 net capital loss. Assuming Alan reported $54,000 of nonrecaptured 1231 losses

In the current year, Alan reported a $104,950 net 1231 gain and a $4,000 net capital loss. Assuming Alan reported $54,000 of nonrecaptured 1231 losses during the prior 5 years, what amount of Alan's net 1231 gain for the current year, if any, is treated as ordinary income?

Multiple Choice

  • $50,950.

  • $104,950.

  • $54,000.

  • None of the choices are correct.

  • $0.

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