Morgan's Water World (MWW), an LLC, opened several years ago and reports the following net §1231 gains and losses since it began business.
Year ______________________ Net §1231 Gains/(Losses)
Year 1 ....................................... ($11,000)
Year 2 ....................................... 5,000
Year 3 ....................................... (21,000)
Year 4 ....................................... (4,000)
Year 5 ....................................... 17,000
Year 6 ....................................... (43,000)
Year 7 (current year) ...................... 113,000
What amount, if any, of the year 7 $113,000 net §1231 gain is treated as ordinary income?