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  3. corporation q, a calendar year taxpayer, has incur

Corporation Q, a calendar year taxpayer, has incurred the following Section 1231 net gains and...

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Accounting

Corporation Q, a calendar year taxpayer, has incurred the following Section 1231 net gains and losses since its formation in 2020:
202020212022Section 1231 gains$ 14,800$ 5,7000Section 1231 losses(13,000)(9,000)$ (3,100)Net gain or (loss)$ 1,800$ (3,300)$ (3,100)
Required:
In 2023, Corporation Q sold only one asset and recognized a $4,000 Section 1231 gain. How much of this gain is treated as capital gain, and how much is ordinary?
In 2024, Corporation Q recognized a $16,700 Section 1231 gain on the sale of one asset and a $2,000 Section 1231 loss on the sale of a second asset. How much of the $14,700 net gain is treated as capital gain, and how much is ordinary?
Required:
Determine the amount and character of CNs gain from its sale of goodwill.

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