14 Required information [The following information applies to the questions displayed below.] Part 1 of 2 Hans runs a sole proprietorship. Hans has reported the following net $1231 gains and losses since he began business. Net $1231 gains shown are before the look back rule. (Leave no answers blank. Enter zero if applicable.) Year Skipped Net 61231 Gains/(Losses) $ (70,500) 17,750 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 (current year) References 12,200 52,750 a. What amount, if any, of the year 7 (current year) $52,750 net $1231 gain is treated as ordinary income? Ordinary income Required information (The following information applies to the questions displayed below.) Hans runs a sole proprietorship. Hans has reported the following net $1231 gains and losses since he began business. Net $1231 gains shown are before the look back rule. (Leave no answers blank. Enter zero if applicable.) Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 (current year) Net $1231 Gains/(Losses) $ (70,500) 17,750 12,200 52,750 b. Assume that the $52,750 net $1231 gain occurs in year 6 instead of year 7. What amount of the gain would be treated as ordinary income in year 6? Ordinary income