Yelenis, Whose Tax Rate Is 28%, Sells One Sec $$\begin{array} { | l | l | l | } \hline 15 \% & 25 \% & 28 \% \\\hline \$ 20,000 & \$ 16,000 & \$ 0 \\\hline\end{array}$$

Multiple Choice

Yelenis, whose tax rate is 28%, sells one Sec. 1231 asset this year, resulting in a $50,000 gain. Included in the $50,000 Sec. 1231 gain is $30,000 of unrecaptured Sec. 1250 gain. A review of Yelenis tax files for the past five years indicates one prior Sec. 1231 sale which resulted in a $14,000 loss. The gain will be taxed as

A) $$\begin{array} { | l | l | l | } \hline 15 \% & 25 \% & 28 \% \\\hline \$ 20,000 & \$ 16,000 & \$ 0 \\\hline\end{array}$$
B) $$\begin{array} { | l | l | l | } \hline 15 \% & 25 \% & 28 \% \\\hline\$ 20,000 & \$ 16,000 & \$ 14,000 \\\hline\end{array}$$
C) $$\begin{array} { | l | l | l | } \hline 15 \% & 25 \% & 28 \% \\\hline \$ 6,000 & \$ 30,000 & \$ 0 \\\hline\end{array}$$
D) $\begin{array}{|l|l|l|}\hline15 \% & 25 \% & 28 \% \\\hline \$ 6,000 & \$ 30,000 & \$ 14,000 \\\hline\end{array}$