Yen hung, who is single, forms a corporation using a tax-free asset transfer. Which qualifies under Sec. 351. She contributes property having an adjusted basis of $50,000 and an FMV of $40,000. The stock received from the corporation is Sec. 1244 stock. When Yen hung sells the stock for $30,000. Her loss is

A)
Ordinary loss	Capital loss
$ 0	$20,000
B)
Ordinary loss	Capital loss
$10,000	$10,000
C)
Ordinary loss	Capital loss
$20,000	$0
D)
Ordinary loss	Capital loss
$10,000	$0