Zoe purchased 500 shares of PZI stock five years ago when it was trading at $70 per share. Unfortunately, PZI has been steadily declining. Zoe sold her shares this year for $10 per share. This year Zoe also sold 1,000 shares of a mutual fund that she purchased 8 months ago. Her average cost per share was $18 and she sold the shares for $25. Assuming Zoe had no other capital transactions this year, what is Zoe's tax consequence from these transactions?

• $23,000 long-term loss this year. $30,000 long-term loss, $7,000 short-term gain taxed at ordinary income rates this year.
• $3,000 ordinary loss this year, $23,000 loss carried forward indefinitely.
• $3,000 ordinary loss this year, $23,000 ordinary loss carried forward up to 5 years.