Jerry heavily speculated in a very risky technology stock during the market bubble of the late 90's. He paid only $10 per share and purchased 3,000 shares of WYBOG in May 1999. By year's end, the value of each share had risen to $92. Being in the highest federal tax bracket (39.6% in 1999), he decided NOT to cash in then. He preferred to be taxed at favorable, long-term capital gains rates and so held onto the stock. WYBOG stock price tumbled and he liquidated all of his holdings in June 2000 for $4 per share. Based upon the fact pattern as described:

select one:

a. Jerry had $12,000 in long-term capital gains to offset ordinary income = $3,000 in 2000, with the balance carried forward for future years

b. had jerry cashed in his holdings in December 1999, long-term gains would apply

c. had Jerry cashed in all of WYBOG stock at the end of 1999, he would have seen approximately $98,000 of gain wiped out by taxes

d. Jerry's initial paper profit in December 1999 was more than 900%