Question 22 of 40. On October 12, 2022, Nina purchased one Bitcoin for $19,203. On December 19, 2022, she sold the Bitcoin for $16,398. On December 29, 2022, she bought another Bitcoin for $16,642. These were her only transactions during the year involving virtual currency. When Nina files her 2022 return, the sale of the Bitcoin should be reported as a:

$0 capital gain or loss, after making the adjustment for a disallowed wash sale loss.

$2,805 adjustment to income on Schedule 1, Additional Income and Adjustments to Income.

$2,805 foreign currency loss under Section 988 of the Internal Revenue Code.

$2,805 short-term capital loss.