Required information The following information applies to the questions displayed below] 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 lookback rule. (Leave no answer blank. Enter zero if applicable.) Net 51231 Gains/(Losses) $(77,500) Year Year 1 21,250 Year 2 Year 3 Year 4 15,000 Year 5 Year 6 56,25e Year 7 (current year) a. What amount, if any, of the year 7 (current year) $56,250 net $1231 gain is treated as ordinary income? Ordinary income Required information [The following information applies to the questions displayed below] Hans runs a sole proprietorship. Hans has reported the following net $1231 gains and losses since he began business. Net 51231 gains shown are before the lookback rule. (Leave no answer blank. Enter zero if applicable.) Net 51231 Gains/(Losses) $(77,500) 21,250 Year Year 1 Year 2 Year 3 Year 4 Year 5 15,000 Year 6 Year 7 (current year) 56,250 b. Assume that the $56,250 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? Ordinary income