amount and character of each shareholder's loss? Sale of Sec. 1244 Stock. Lois, who is single, transfers property with an $80,000 basis and a $120,000 FMV to Water Corporation in exchange for all 100 shares of Water stock. The shares qualify as Sec. 1244 stock. Two years later, Lois sells the shares for $28,000. a. What are the amount and character of Lois's recognized gain or loss? b. How would your answer to Part a change if the FMV of the property were $70,000? Transfer of Sec. 1244 Stock. Assume the same facts as in Problem C:2-51 except that Lois gave the Water stock to her daughter, Sue, six months after she received it. The stock had a