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Lois, who is single, transfers property with an $ 8 0 , 0 0 0 basis and a $ 1 2 0 , 0 0

Lois, who is single, transfers property with an $80,000 basis and a $120,000 fair market value to Water Corporation in exchange for all 100 shares of Water stock. The shares qualify as 1244 stock. Two years later, Lois sells the shares for $28,000.
What amount of gain or loss does Lois recognize, and what is the character of the gain or loss?

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