Daniel Recognizes $35,000 of Sec $$\begin{array} { | l | l | } \hline \text { NLTCG } & \text { OrdinaryIncome } \\\hline\$ 10,000 & \$ 0 \\\hline\end{array}$$

Multiple Choice

Daniel recognizes $35,000 of Sec. 1231 gains and $25,000 of Sec. 1231 losses during the current year. The only other Sec. 1231 item was a $4,000 loss three years ago. This year, Daniel must report

A) $$\begin{array} { | l | l | } \hline \text { NLTCG } & \text { OrdinaryIncome } \\\hline\$ 10,000 & \$ 0 \\\hline\end{array}$$
B) $$\begin{array} { | l | l | } \hline \text { NLTCG } & \text { OrdinaryIncome } \\\hline \$ 6,000 & \$ 4,000 \\\hline\end{array}$$
C) $$\begin{array} { | l | l | } \hline \text { NLTCG } & \text { OrdinaryIncome } \\\hline \$ 4,000 & \$ 6,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | l | } \hline \text { NLTCG } & \text { OrdinaryIncome } \\\hline \$ 4,000 & \$ 10,000 \\\hline\end{array}$$