Henry's Engineering (a sole proprietorship) has the following gains and losses from Section 1231 property during 2021: Casualty losses $(14,000) Casualty gains 5,000 Section 1231 gains 9,000 Section 1231 losses (6,000) No net Section 1231 losses have been deducted as ordinary losses in prior years. How will this information affect Henry's 2021 taxable income? O Henry will report an ordinary loss of $9,000 and a long-term capital gain of $3,000. O Henry will report a capital loss of $9,000 and ordinary income of $3,000. O Henry will report a net section 1231 loss of $6,000. O The transactions have no effect on 2021 taxable income