Hank transfers property (basis of $255,430 and fair market value of $452,350) to Minerals Corporation in exchange for 1244 stock. The transfer qualifies as a nontaxable exchange under 351. In the current year, Hank sells the Minerals stock for $132,560. Assume Hank files a joint return with his wife, Marie. With respect to the sale, Hank has:

Question options:

A. An ordinary loss of $122,870.

B. An ordinary loss of $100,000 and a capital loss of $219,790.

C. A capital loss of $122,870.

D. An ordinary loss of $100,000 and a capital loss of $22,870.

E. None of these.