Devon purchased 400 shares of NAY stock six years ago when it was trading at $65 per share. Unfortunately, NAY has been steadily declining. Devon sold his shares this year for $18 per share. This year Devon also sold 800 shares of a mutual fund that he purchased 6 months ago. His average cost per share was $15 and he sold the shares for $32. Assuming he had no other capital transactions this year, what is Devon's tax consequence from these transactions?

A

$5,200 long-term loss this year.

B

$18,800 long-term loss, $13,600 short-term gain taxed at ordinary income rates this year.

C

$3,000 ordinary loss this year, $15,800 ordinary loss carried forward up to 5 years.

D

$3,000 ordinary loss this year, $2,200 loss carried forward indefinitely.