Herman, a single individual, formed a corporation in Year 1 by way of a qualifying Section 351 tax-free asset transfer, in which he transferred property having an adjusted basis of $250,000 and a fair market value of $220,000, and received Section 1244 small business corporation stock in exchange. In Year 3 Herman sold all of the stock for $210,000. What is the amount and character of loss that Herman must recognize as a result of selling the stock in Year 3? Ordinary Loss Capital Loss $40,000 $30,000 cs : $10,000 $ 40,000 $ 10,000 " $ 0