In 2013, Rick had a $12,000 gain on the sale of stock purchased three years ago, a $7,000 loss on the sale of a personal use automobile, and a $3,000 loss from the sale of land used in his business (owned for six years). These are Rick's only property transactions during the year. Once the netting process is complete, on his tax return Rick's gains and losses will be treated as:
a. a $3,000 ordinary loss and a $9,000 net long-term capital loss.
b. a $2,000 net long-term capital gain.
c. a $3,000 ordinary loss and a $12,000 net long-term capital gain.
d. a $9,000 net long-term capital gain.
e. none of the above.