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Stan sells a piece of land he used in his auto repair business at a gain of $9,000 in 2022. In addition, Stan sells equipment
Stan sells a piece of land he used in his auto repair business at a gain of $9,000 in 2022. In addition, Stan sells equipment he purchased in 2012 for $8000. He paid $20,000 for the equipment that had an adjusted basis of $12,000 when it was sold. He also sells some stock in 2022 at a long-term loss of $11,000. No losses on the disposition of section 1231 assets were recognized in prior years. The effect of these transactions on Stan's 2022 taxable income is:
A. Decrease of $6,000
B. Decrease of $3,000
C. Increase of $6,000
D. Zero, with a long-term capital loss carry back of $2,000
E. Zero, with a long-term capital loss carry back of $6,000
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