In the current year, Jack realized $20,000 of Section 1231 gain and $18,000 of Section 1231 losses. What does he recognize this year?

a. Capital Gain of $2,000 and no ordinary income

b. Capital gain of $20,000 and $18,000 of ordinary losses

c. Capital loss of $18,000 and $20,000 of ordinary income

d. No capital gain and $2,000 of ordinary income

e. none of the above