An Individual Has the Following Recognized Gains and Losses from Disposition

Multiple Choice

An individual has the following recognized gains and losses from disposition of § 1231 assets (all the assets were vacant land) : $15,000 gain, $10,000 loss, $25,000 gain, and $2,000 loss. The individual has a $5,500 § 1231 lookback loss. The individual also has a $16,000 net short-term capital loss from the disposition of stock. Which of the following statements is correct?

A) The taxpayer has $5,500 ordinary gain and $6,500 net long-term capital gain.
B) The taxpayer has $12,000 net long-term capital gain.
C) The taxpayer has $28,000 ordinary gain and $16,000 net short-term capital loss.
D) The taxpayer has $5,500 ordinary loss and $6,500 net long-term capital gain.
E) None of the above.