See attached file for full problem description.
Case A: AGI 40,000
Net 1231 gains 19000 - 5000 = 14,000
Adjusted AGI 54,000
Section 1231 gains are capital gains
Case B: AGI 40,000
In four separate cases involving Vivian's AGI, business gains and losses plus capital gains and losses cases are analyzed for their combined effects including rights of offset and carry over amounts. A sentence of explanation is added where needed to clarify the calculations.