During the tax year, Taxpayer, who is unmarried, earned $70,000 in ordinary income, a net short-term capital loss of $6,500 and a net long-term capital gain of $1,250. Select the option that best describes the impact of the capital gains and losses.

A) Taxpayer must report an offset again ordinary income of $3,000 and a short-term capital loss carryforward of $2,250.

B) Taxpayer must report no offset against ordinary income and a $5,250 short-term capital loss carryforward.

C) Taxpayer must report an offset again ordinary income of $3,000 and a long-term capital loss carryforward of $2,250.

D) Taxpayer must report an offset of $5,250 against ordinary income and no capital loss carryforward.