LO6 Fred’s Foam Foundations (FFF) is a sole proprietorship that Fred started in 2005. Before the current year, FFF had not disposed of any property it owned. During the current year, FFF has the following gains and losses:

What is the effect of these transactions on Fred’s taxable income? Explain, and show the calculations.

Transcribed Image Text:

Casualty loss on foam truck $3,200 Section 1231 gains. 9,400 Section 1231 losses 3,000