Larry is the sole proprietor of a trampoline shop. During 2015, the following transactions occurred.

A) Unimproved land adjacent to the store was condemned by the city on February 1. The condemnation proceeds were $15,000. The land, acquired in 1985, had an allocable basis of $40,000. Larry has additional parking across the street and plans to use the condemnation proceeds to build his inventory.

?There is a (gain or loss) of (?$?) and that is treated as (1231loss or 1231 gain or ordinary income)?