The following apply to Simon, a single individual:

• In July, year 2, Simon sold for $12,000 Section 1231 property acquired by Simon in December, year 1 for $7,000.
• In February, year 2, Simon inherited from her parents Section 1244 stock, which had cost her parents $5,000 and was worth $10,000 at time of inheritance. Later in year 2, the stock became worthless.
• In May, year 2, Simon sold for $17,000 Section 1231 property Simon had acquired in January, year 1for $10,000.

As a result of the above, what is Simon's net capital gain (loss)?

A.

$0

B.

$2,000

C.

($3,000)

D.

$7,000

11- Decker, an individual, owns 100% of Acre, an S corporation.At the beginning of the year, Decker's basis in Acre was $25,000.Acre had ordinary income during the year in the amount of $10,000 and a long-term capital loss in the amount of $4,000.Decker has no other capital gains or losses during the year.What amount of the long-term capital loss may Decker deduct this year?

A.

$0

B.

$1,000

C.

$3,000

D.

$4,000