Individual Lark's year 2 brokerage account statement listed the following capital gains and losses from the sale of stock investments:
| Short-term capital gain | $6,000 | | Long-term capital gain | 14,000 | | Short-term capital loss | 4,000 | | Long-term capital loss | 8,000 |
In addition, two stock investments became worthless in year 2. Public Company X stock was purchased in December, year 1, for $5,000, and formal notification was received by Lark on July, year 2, that it was worthless. Private company Section 1244 stock was issued to Lark for $10,000 in January, year 1, and was determined to be worthless in December, year 2. What is Lark's year 2 net capital gain or loss before any capital loss limitation?
A. $2,000 net capital loss.
B. $3,000 net capital gain.
C. $7,000 net capital loss.
D. $8,000 net capital gain.
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