An individual had the following gains and losses during 20x2 on property held for the long-term holding period: sale of Orange common stock ($3,000 gain), sale of real property used in the taxpayer's business ($1,800 loss), and destruction of real property used in the taxpayer's business by fire ($1,000 loss). Which of the following is correct?

The fire loss would reduce the real property sale loss. The fire loss would reduce the stock sale gain. The sale of real property loss would be netted against the stock sale gain. The sale of real property is a 1231 loss. None of the above