Question: In the current year, Alan reported a $105,025 net 1231 gain and a $4,000 net capital loss. Assuming Alan reported $59,500 of nonrecaptured 1231 losses

In the current year, Alan reported a $105,025 net 1231 gain and a $4,000 net capital loss. Assuming Alan reported $59,500 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?

None of the choices are correct.
$0.
$59,500.
$105,025.
$45,525.

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