. 13. In 2019, Mr. Duke filed a joint return and had itemized deductions. The only income on the return was wages from Mrs. Duke and Schedule C income from a small business owned by Mr. Duke. During the examination, a TCO discovers that the following transactions were not reported on the Dukes' return; Recognized gain of $8,000 on the condemnation of a warehouse used in the business for 8 years. 1 Theft of a 2-year-old business auto at a loss of ($2,000). Loss of ($9,000) on sale of a 3-year-old business machine Gain of $10,000 on sale of theil vacation cottage. 13. What is the Dukes' IRC $ 1231 gain or loss? oa ($3,000) ob. ($1,000) Oc. $7,000 od. $9,000 . . . 13. In 2019, Mr. Duke filed a joint return and had itemized deductions. The only income on the return was wages from Mrs. Duke and Schedule C income from a small business owned by Mr. Duke. During the examination, a TCO discovers that the following transactions were not reported on the Dukes' return; Recognized gain of $8,000 on the condemnation of a warehouse used in the business for 8 years. 1 Theft of a 2-year-old business auto at a loss of ($2,000). Loss of ($9,000) on sale of a 3-year-old business machine Gain of $10,000 on sale of theil vacation cottage. 13. What is the Dukes' IRC $ 1231 gain or loss? oa ($3,000) ob. ($1,000) Oc. $7,000 od. $9,000