Sergio who is married and sole shareholder of El Centro Corporation, sold all of his stock in the corporation for $250,000. Sergio had organized the corporation in 2010 by contributing $400,000 and receiving all of the capital stock of the corporation. El Centro Corporation is a domestic corporation engaged in the manufacturing of mountain bikes. The stock in El Centro Corporation qualified as Sec. 1244 stock. The sale results in a(n)

A) ordinary loss of $150,000.

B) long-term capital loss of $150,000.

C) long-term capital loss of $100,000 and ordinary loss of $50,000.

D) ordinary loss of $100,000 and long-term capital loss of $50,000.

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