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Since its formation, Roof Corporation has incurred the following net Section 1231 gains and losses. Year 1 Year 2 Year 3 $(12,000) 10,500 (14.600) Net

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Since its formation, Roof Corporation has incurred the following net Section 1231 gains and losses. Year 1 Year 2 Year 3 $(12,000) 10,500 (14.600) Net Section 1231 loss Net Section 1231 gain Net Section 1231 loss a. In year 4, Roof sold only one asset and recognized a $7,500 net Section 1231 gain. How much of this gain is treated as capital gain, and how much is ordinary? b. In year 5, Roof sold one asset and recognized a $9,000 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary? Complete this question by entering your answers in the tabs below. Required A Required B In year 4, Roof sold only one asset and recognized a $7,500 net Section 1231 gain. How much of this gain is treated as capital gain, and how much is ordinary? (Leave no cell blank. Enter "0" for cells that do not have an amount.) Capital gain Ordinary income

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