Ramona Recognizes a $50,000 Section 1231 Loss, a $30,000 Section

Ramona recognizes a $50,000 Section 1231 loss, a $30,000 Section 1231 gain, and ordinary income of $35,000 in 2018. Before 2018, Ramona's only Section 1231 transaction was a $15,000 loss reported in 2014. How should Ramona report her 2018 transactions?

A) $20,000 capital loss and $35,000 ordinary income.
B) $15,000 net Section 1231 gain.
C) $15,000 capital loss.
D) $15,000 ordinary income.
E) $15,000 capital gain.

Correct Answer:

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