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 answer blank. Enter zero if applicable.)

	Net 1231
Year	Gains/(Losses)
Year 1	$(74,000)
Year 2	19,500
Year 3	0
Year 4	0
Year 5	13,600
Year 6	0
Year 7 (current year)	54,500

a. What amount, if any, of the year 7 (current year) $54,500 net 1231 gain is treated as ordinary income?

b. Assume that the $54,500 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?