Problem $11-53($LO $11-5)($Static$)$

Morgan's Water World $($MWW$),$ an LLC$,$ opened several years ago. MWW has reported the following net $\backslash$$$1231$ gains and losses since it began business. Net $\backslash (\backslash$$ $1231\backslash )$ gains shown are before the look$-$back rule.

What amount, if any, of the current year $($year $7)\backslash (\backslash$$ $113,000\backslash )$ net $\backslash (\backslash$$ $1231\backslash )$ gain is treated as ordinary income?

Ordinary income