During 20X1, Taxpayer, individual, obtained the following results with various transactions related to his properties:

1.Short-term capital gain of $18,000

2.Long-term capital loss of $25,000

What is the gain or loss realized and recognized in 20X1 for Taxpayer in Puerto Rico? Select one:

a.Net long-term capital loss $7,000; capital loss recognized $3,000.

b.Net long-term capital loss $7,000; capital loss recognized $7,000.

c.Realized short-term capital gain $18,000; capital loss recognized $7,000.

d.Net long-term capital loss $7,000; capital loss recognized $1,000.