Yelenis,whose Tax Rate Is 32%,sells One Sec $$\begin{array} {| l | l | l | } \hline 15 \% & 25 \% & 32 \% \\\hline \$ 20,000 & \$ 16,000 & \$ 0 \\\hline\end{array}$$

Multiple Choice

Yelenis,whose tax rate is 32%,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) $$\begin{array} {| l | l | l | } \hline 15 \% & 25 \% & 32 \% \\\hline \$ 20,000 & \$ 16,000 & \$ 0 \\\hline\end{array}$$
B) $$\begin{array} { | l | l | l | } \hline 15 \% & 25 \% & 32 \% \\\hline \$ 20,000 & \$ 16,000 & \$ 14,000 \\\hline\end{array}$$
C) $$\begin{array} {| l | l | l | } \hline 15 \% & 25 \% & 32 \% \\\hline \$ 6,000 & \$ 30,000 & \$ 0 \\\hline\end{array}$$
D) $$\begin{array} { | l | l | l | } \hline 15 \% & 25 \% & 32 \% \\\hline \$ 6,000 & \$ 30,000 & \$ 14,000 \\\hline\end{array}$$