Nancy sold three capital assets that were held for investment. She sold stock in ABC Corporation for a gain of $10,000; stock in XYZ Corporation for a gain of $2,000; and corporate bonds for a loss of $20,000. Assuming all of the investments had a long-term holding period, how will the transactions be treated for tax purposes?
O Net loss of $8,000 that is fully deductible against ordinary income in the current year
O $3,000 deduction against ordinary income with a $5,000 capital loss carried forward to offset income for next year
O Net loss of $8,000 that results in no deduction in the current year, but can be carried forward to offset capital gains for next year
O Gain of $12,000 taxed at 15% and a loss of $20,000 deductible against her ordinary income
