Hans runs a sole proprietorship. Hans reported the following net 1231 gains and losses since he began business: (Leave no answer blank. Enter zero if applicable.)

Year Net 1231 Gains/(Losses)

Year 1 $(65,000)

Year 2 15,000

Year 3 0

Year 4 0

Year 5 10,000

Year 6 0

Year 7 (current year) 50,000

a.	What amount, if any, of the year 7 (current year) $50,000 net 1231 gain is treated as ordinary income?

b.	Assume that the $50,000 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?