Delour Inc

Multiple Choice

Delour Inc.was incorporated in 2011 and adopted a calendar year.Here is a schedule of Delour's net Section 1231 gains and (losses) reported on its tax returns through 2016. In 2017,Delour recognized a $50,000 gain on the sale of business land.How is this gain characterized on Delour's tax return?

A) $50,000 Section 1231 gain.
B) $12,000 ordinary gain and $38,000 Section 1231 gain.
C) $16,900 ordinary gain and $33,100 Section 1231 gain.
D) $50,000 ordinary gain.