1. Vertical, Inc., has a 2017 net 1231 gain of $67,000 and had a $22,000 net 1231 loss in 2016. For 2017, Vertical's net 1231 gain is treated as:

a.$45,000 long-term capital gain and $22,000 ordinary loss.

b.$67,000 capital gain.

c.$45,000 long-term capital gain and $22,000 ordinary gain.

d.$67,000 ordinary gain.

e.None of these choices are correct.