In 2016, Harold had a Section 1231 gain of $12,000. In the prior years, Harold had the following Section 1231 transactions: YEAR - NET SECTION 1231 TRANSACTION 2015 - $5,000 Section 1231 Loss 2014 - $3,000 Section 1231 Loss 2013 - No Section 1231 Transactions 2012 - No Section 1231 Transactions 2011 - No Section 1231 Transactions 2010 - $7,000 Section 1231 Gain 2009 - $4,000 Section 1231 Gain How will Harold's Section 1231 gain be taxed in 2016?

		$12,000 will be taxed as ordinary income.
		$8,000 will be taxed as ordinary income and $4,000 will be taxed as a Section 1231 capital gain.
		$12,000 will be taxed as a Section 1231 capital gain.
		None of the above. Income Tax