Jesse is married, but for 2021, he will file separately from his wife. On January 29, 2021, he purchased 100 shares of KLM stock for $10000. Shortly after he made the purchase, the price of the stock declined sharply. Concerned that his investment would continue to lose value, Jesse decided to cut his losses, and he sold all of his shares of KLM for $5000 on March 25, 2021.

Jesse did not have any other capital gains or losses that year, and his only other income consisted of $72000 in wages. Jesse has not had good luck with his investments in recent years, and he also has a prior-year carryover loss of $2000. What amount of capital loss can Jesse use to offset his 2021 ordinary income?

A. $1500.

B. $3000.

C. $5000.

D. $7000.