Which of the following is an example of a transaction that does not require the filing of Form 8949, Sales and Other Dispositions of Capital Assets? Instead, it may be reported directly on Schedule D, capital Gaines and Losses.

A. The taxpayer incurred a loss on the sale of a covered security, and a portion of the loss may be carried forward to the next tax year.

B. The transaction involved the sale or exchange of a noncovered security.