A taxpayer has the following gains and losses from property transactions in the current year:

$40,000 Section 1231 gain

$25,000 Section 1231 loss

$12,000 Long-term capital gain

$9,000 Short-term capital loss How are these transactions treated for tax purposes if the taxpayer recognized an $8,000 Section 1231 loss in the previous tax year?

a. $18,000 long-term capital gain

b. $15,000 Section 1231 gain; $3,000 short-term capital loss

c. $8,000 ordinary income from look-back; $10,000 long-term capital gain

d. $8,000 ordinary income from look-back; $7,000 Section 1231 gain; $3,000 longterm capital gain AppendixLO1