Each of the following statements regarding the reporting requirements for a transaction involving the sale of shares of stock is correct EXCEPT:

A capital loss that is carried forward does not differentiate between short-term and long-term. For a transaction involving noncovered securities, short-term and long-term capital gains and losses are reported on Form 8949 and carried to Schedule D. Total capital gain or loss is computed by combining net short-term gains and losses and net long-term gains and losses. Under certain circumstances, short-term and long-term capital gains and losses may be aggregated and reported directly on Schedule D.