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

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