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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 answers blank. Enter zero if applicable.) Net 1231 Year Gains/(Losses) Year 1 $(66,500) Year 2 15,750 Year 3 0 Year 4 0 Year 5 10,600 Year 6 0 Year 7 (current year) 50,750

a. What amount, if any, of the year 7 (current year) $50,750 net 1231 gain is treated as ordinary income?

b. Assume that the $50,750 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?