Proctor Inc

Multiple Choice

Proctor Inc.was incorporated in 2011 and adopted a calendar year.Here is a schedule of Proctor's net Section 1231 gains and (losses) reported on its tax returns through 2016. In 2017,Proctor recognized a $25,000 gain on the sale of business land.How is this gain characterized on Proctor's tax return?

A) $25,000 Section 1231 gain.
B) $19,700 ordinary gain and $5,300 Section 1231 gain.
C) $15,900 ordinary gain and $9,100 Section 1231 gain.
D) $25,000 ordinary gain.