During the current year, Peter has Section 1231 gains totaling $8,000. He also has $1,000 of Section 1231 losses. Four years ago, Peter reported a net Section 1231 loss of $2,000. These are the only two years in which Peter has had Section 1231 gains or losses. What is the amount and character of the current year's Section 1231 gains and losses?

A)

$5,000 ordinary income, $2,000 long-term capital gain

B)

$7,000 ordinary income

C)

$2,000 ordinary income, $5,000 long-term capital gain

D)

$7,000 long-term capital gain