In 2016, Larry transferred property with an adjusted basis of $90,000 and a fair market value of $150,000 to a corporation in exchange for stock. Code Sec. 351 applies to the transfer and the stock qualifies as Code Sec 1244 stock. After two year, Corporation liquidated and filed bankruptcy. Larry would recognize : (3 Pt) Show your work.

a. $60,000 long-term capital gain

b. $60,000 ordinary loss

c. $10,000 long-term capital loss, $50,000 ordinary loss

d. $50,000 ordinary loss, $40,000 long-term capital loss