Seth converts $100,000 in his traditional IRA to a Roth IRA in October of this year. The value of the converted assets in the Roth IRA drops by 40% due to a significant decline in the stock market that occurs 1 month after the October conversion. How much income does Seth report in the current year from the conversion and what is the tax treatment of the conversion?

a. $100,000 ordinary income

b. $100,000 capital gain income

c. $60,000 ordinary income

d. $60,000 capital gain income

e. $100,000 ordinary income and a $40,000 capital loss