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 long-term capital gain