$12,000 net Sec. 1231 gain taxed as a LTCG b. $7,500 ordinary income and $4,500 Sec. 1231 gain

In 2012, Mika has $60,000 of 1231 gains and $48,000 of 1231 losses. During the prior five years, she had the following 1231 results:

2006 $3,000 1231 loss

2007 $4,000 1231 gain

2008 $5,000 1231 loss

2009 $2,000 1231 gain

2010 $4,500 1231 loss

What are the tax consequences of the 1231 transactions?

a. $12,000 net Sec. 1231 gain taxed as a LTCG

b. $7,500 ordinary income and $4,500 Sec. 1231 gain

c. $12,000 1231 gain taxed as ordinary income

d. $7,500 Sec. 1231 gain and $4,500 ordinary income

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