John owned one passive activity. John sold the activity and realized a $5,000 gain on the sale. Prior to the sale, he realized a current year loss from the activity of $7,000. In addition, he has suspended losses from prior years of $8,000. What is the net impact on John's AGI this year due to the passive activity?

Select one:

a. no net change

b. decrease of $10,000

c. decrease of $2,000

d. increase of $5,000