18. The results of Eagle Companys first 5 years of operations are presented below:

Year Results of Operations for the Year

1 Net Sec. 1231 gains of $8,000

2 Net Sec. 1231 losses of $3,000

3 Net Sec. 1231 losses of $7,000

4 Net Sec. 1231 gains of $6,000

5 Net Sec. 1231 gains of $9,000

Eagles Year 5 Sec. 1231 gain can be characterized as:

Ordinary Income LTCG

a. $9,000 $ 0

b. $ 0 $9,000

c. $4,000 $5,000

d. $5,000 $4,000

e. None of the answers provided is correct

**The answer is C need to know how it was calculated ? **