This year, PRS Corporation generated $300,000 income from the performance of consulting services for its clients. It sold two assets during the year, recognizing a $36,000 gain on the first sale and a $49,000 loss on the second sale. Compute PRS’s taxable income assuming that:
a. Both the gain and the loss were capital.
b. Both the gain and the loss were ordinary.
c. The gain was ordinary, and the loss was capital.
d. The gain was capital, and the loss was ordinary.