) Thoren has the following items for the year: $4,000 of short-term capital gain, $5,000 of 0%/15%/20% long-term capital gain, and $1,500 of 28% capital loss. Which of the following is correct?

a. The $1,500 loss will first be offset by the $4,000 short-term gain.

b. The $1,500 loss will first be offset by the $5,000 long-term gain.

c. The $4,000 short-term gain will first be offset by the $5,000 long-term gain.

d. The taxpayer will have a net short-term capital loss.