Evans Corporation has a $15,000 net capital loss in 2009. The corporation reported the following capital gain net income during the past three years. Identify which of the following statements is true. YearCapital Gain 2006$10,000 2007 11,000 2008 5,000:
a) The loss is used to offset $3,000 of the current year ordinary income, all of the year 2007 capital gains and $7,000 of the year 2008 net gain.
b) The loss is used to offset the $11,000 of the 2007 gains and then carried back to offset $4,000 of the year 2006 net gain.
c) The loss is used to offset the year 2006 net gains, then $5,000 of the year 2007 net gains.
d) The loss is used to offset the gains from 2006 and then carried back to offset $10,000 of the gains in 2007.