Evans Corporation has a $15,000 net capital loss this year. The corporation reported the following capital gains during the past three years: Year Third previous year Second previous year Last year Capital Gains $ 10,000 11,000 5,000 Which of the following statements is correct? A B The loss is used to offset the third previous year's net gains, then $5,000 of the second previous year's net gains. The loss is used to offset the $11,000 of the second previous year's gains and then carried back to offset $4,000 of the third previous year's net gain. The loss is used to offset the gains from last year and then carried back to offset $10,000 of the gains in the second previous year. The loss is used to offset $3,000 of the current-year ordinary income, all of the last year's capital gains, and $7,000 of the second previous year's net gain. C D