Lowe Company, a calendar year taxpayer, sold two operating assets this year (each held for over a year). The first sale generated a $19,200 Section 1231 loss, and the second sale generated a $33,600 Section 1231 gain. As a result of these sales, Lowe should recognize:

Multiple Choice

$19,200 ordinary loss and $33,600 gain treated as capital gain.

$14,400 gain treated as capital gain.

$14,400 ordinary income.

None of these choices are correct