During the Current Year, Cathy Realizes • a $3,000 Loss

During the current year, Cathy realizes • a $3,000 loss on the sale of her personal use automobile held 4 years.
• a $4,000 loss on the sale of Itoham Corporation stock held 3 years for investment.
• a $2,000 gain on the sale of Sterling, Inc., bonds held 7 months for an investment. Determine the tax consequences of these events.

A) Cathy deducts a $5,000 net capital loss.
B) Cathy deducts a $3,000 net capital loss.
C) Cathy deducts a $2,000 net capital loss.
D) Cathy deducts a $1,000 net capital loss.
E) Cathy deducts a $7,000 net capital loss.