Bobsy Company Has a $14,000 Net Section 1231 Gain for the Current

Multiple Choice

Bobsy Company has a $14,000 net Section 1231 gain for the current tax year from its only property transaction.In the previous year, it had a $7,000 net Section 1231 loss.For the current year, the net Section 1231 gain will be taxed as:

A) A $14,000 ordinary income
B) A $14,000 capital income
C) A $7,000 ordinary income and a $7,000 long-term capital gain
D) A $7,000 ordinary income and a $7,000 short-term capital gain