In Its Current Tax Year, PRS Corporation Generated $300,000 Ordinary

Multiple Choice

In its current tax year, PRS Corporation generated $300,000 ordinary income from the performance of consulting services for its clients. PRS sold two assets, recognizing a $20,000 gain on the first sale and a $31,000 loss on the second sale. Which of the following statements is false?

A) If the gain and loss were capital gain and loss, PRS's taxable income was $300,000.
B) If the gain was capital gain and the loss was ordinary, PRS's taxable income was $269,000.
C) If the gain and loss were ordinary, PRS's taxable income was $289,000.
D) If the gain was ordinary and the loss was a capital loss, PRS's taxable income was $320,000.