Student: Test: ACC 28. Farout, Inc., has a 2018 net 5 1231 gain of $42,000. In 2017, Farout For 2018, Farout's net 5 1231 gain is treated as: 91251 gain of $42,000 in 2017. Farut renosted a (S55,000) net 5 1231 los a $55.000 capital gain and $13,000) ordinary loss. b. $55,000 ordinary gain and ($13,000) capital loss. c. $42,000 capital gain. d. $42.000 ordinary gain. 29. An individual has a $15,000 5 1245 recapture gain, a $20,0 15,000 5 1245 recapture gain a $20.000 6 1231 gain, a $25,000) 5 1231 loss, and a $30.000 long-term capital gain. The net result of the above is: Ordinary Income Long Term Capital Gain A $15,000 $25,000 B. ($10,000) $50,000 C. $10,000 $30,000 D. ($25,000) $65,000 30. Which of the following statements about the frequency with w nowing statements about the frequency with which the $250,000/ $500,000 exclusion of gain that is available on the sale of a principal residence Sec. 121) may be used is true a. There is no limit on the use of the exclusion. b. The exclusion may be used once per year. C. The exclusion may be used once in a lifetime. d. The exclusion may be used once every 2 years. 4-point BONUS QUESTION: Shawn a single taxpayer purchased a slope-side duplex (a residential building with 2 identical units) in 2007 for $500,000. Since the purchase, he has lived in one unit as his principal residence and rented the other unit to snowboarders, treating it as rental property and in properly deducting $110,000 depreciation under MACRS. On 3/13/19, Shawn sold the duplex for $900,000. Regulred: Determine the amount of gain (loss) recognized by Shawn and its character (including the applicable LTCG rate -15%, 25%, or 28%). Final