Refer to the facts in problem 58. In the following year, FFF has these gains and losses:

Question:

Refer to the facts in problem 58. In the following year, FFF has these gains and losses:
Casualty gain on building ................. $ 5,000
Section 1231 gains ........................ $ 3,000
Section 1231 losses ..................... $ 17,000
What is the effect of these transactions on Fred's taxable income? Explain, and show the required calculations.