Section 1231 Exercise In the current year, Nesco, a calendar year corporation, recognized a $120,000 capital loss on the sale of marketable securities. The company did not sell any other capital assets during the year. Nesco recognized the following gains and losses on current year sales of operating assets (all assets were held for more than one year): Nesco has nonrecaptured Section 1231 losses dring the previous 5 years totaling $3,200. What is the Character of Nesco's gains/losses on the sale of operating assets? Nesco has nonrecaptured Section 1231 losses during the previous 5 years totaling $3,200. What is the character of Nesco's gains/losses on the-sale of operating assets