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On February 20, 2018, Bill purchased stock in Pink Corporation (the stock is not small business stock) for $1,000. On May 1, 2019, the stock

On February 20, 2018, Bill purchased stock in Pink Corporation (the stock is not small business stock) for $1,000. On May 1, 2019, the stock became worthless. During 2019, Bill also had an $8,000 loss on 1244 small business stock purchased two years ago, a $9,000 loss on a nonbusiness bad debt, and a $5,000 long-term capital gain. How should Bill treat these items on his 2019 tax return?

a.$8,000 ordinary loss and $3,000 short-term capital loss.

b.$4,000 long-term capital loss and $9,000 short-term capital loss.

c.$4,000 long-term capital loss and $3,000 short-term capital loss.

d.$8,000 long-term capital loss and $6,000 short-term capital loss.

e.$8,000 ordinary loss and $5,000 short-term capital loss.

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