Question - On June 20, 2016, Ollie purchased stock in Pink Corporation for $1,000. On May 1, 2017, Pink stock became worthless. During 2017, Ollie also had an $8,000 loss on § 1244 small business stock purchased two years ago, a $9,000 loss on a non-business bad debt, and a $5,000 long-term capital gain. How should Ollie treat these items on his 2017 tax return?

$4,000 long-term capital gain; $9,000 short-term capital loss

$8,000 long-term capital loss; $3,000 short-term capital loss

$4,000 ordinary income; $3,000 short-term capital loss

$8,000 ordinary loss; $5,000 short-term capital loss