Ashburn reported a $104,750 net 1231 gain in year 6. Assuming Ashburn reported $50,000 of nonrecaptured 1231 losses during years 1-5, what amount of Ashburn's net 1231 gain for year 6, if any, is treated as ordinary income?

Multiple Choice

$0.

$54,750

. $50,000.

$104,750.

None of the choices are correct.

Arlington LLC exchanged land used in its business for some new land. Arlington originally purchased the land for $29,000. The new land had a fair market value of $35,500. Arlington also received $3,000 of office equipment in the transaction. What is Arlington's gain or loss recognized on the exchange?

Multiple Choice

$0.

$3,000.

$6,500.

$9,500.

None of the choices are correct.