29. When Pheasant Corporation was formed under 351, Kristen transferred property (basis of $26,000 and fair market value of $22,500) for 1244 stock. Kristen's basis in the Pheasant stock is $26,000. Three years later, Pheasant Corporation goes bankrupt and its stock becomes worthless. Kristen, who is single, owned the stock as an investment. Kristen's loss is:

a.

$26,000 capital.

b.

$22,500 ordinary and $3,500 capital.

c.

$3,500 ordinary and $22,500 capital.

d.

$26,000 ordinary.