The Following Assets in Jack's Business Were Sold in 2010

Multiple Choice

The following assets in Jack's business were sold in 2010: The office equipment had a zero adjusted basis and was purchased for $8,000.The automobile was purchased for $2,000 and sold for $1,200.The ABC stock was purchased for $1,800 and sold for $3,200.In 2010 (the year of sale) ,Jack should report what amount of net capital gain and net ordinary income?

A) $1,700 LTCG.
B) $600 LTCG and $300 ordinary gain.
C) $1,400 LTCG and $300 ordinary gain.
D) $2,500 LTCG and $800 ordinary loss.
E) None of the above.