Blair and Cannon Corporations Are Members of an Affiliated Group

Blair and Cannon Corporations are members of an affiliated group. No prior net Sec. 1231 losses have been reported by any group member. The two corporations report consolidated ordinary income of $100,000 and gains and losses from property transactions as follows. Which of the following statements is correct?

A) The consolidated group reports a net short-term capital gain of $1,000.
B) Blair Corporation's separate return reports a $4,000 net long-term capital gain.
C) Cannon Corporation's separate return reports a $1,000 net long-term capital loss.
D) All three of the above are correct.