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 look back rule. (Leave no answer blank. Enter zero if applicable.) Net $1231 Gains/(Losses) $(74,000) 19,500 Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 (current year) 13,600 0 54,500 a. What amount, if any, of the year 7 (current year) $54,500 net $1231 gain is treated as ordinary income? Ordinary income b. Assume that the $54,500 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 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 look back rule. (Leave no answer blank. Enter zero if applicable.) Net $1231 Gains/(Losses) $(74,000) 19,500 Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 (current year) 13,600 0 54,500 a. What amount, if any, of the year 7 (current year) $54,500 net $1231 gain is treated as ordinary income? Ordinary income b. Assume that the $54,500 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