A Taxable Entity Has the Following Capital Gains and Losses $\begin{array}{lc}\text { Short-term capital loss } &\$(22,000) \\\text { Long-term capital gain } &13,000\end{array}$

A taxable entity has the following capital gains and losses in 2013:
$\begin{array}{lc}\text { Short-term capital loss } &\$(22,000) \\\text { Long-term capital gain } &13,000\end{array}$


I. If the entity is an individual, a $\$ 7,000$ deduction is allowed in 2013.
II. If the entity is a corporation, no deduction is allowed in 2013.

A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements are correct.
D) Neither statement is correct.