Stacy, who is married and sole shareholder of ABC Corporation, sold all of her stock in the corporation for $100,000. Stacy had organized the corporation in 2009 by contributing $225,000 and receiving all of the capital stock of the corporation. ABC Corporation is a domestic corporation engaged in the manufacturing of ski parkas. The stock in ABC Corporation qualified as Sec. 1244 stock. The sale results in a (n)
A. ordinary loss of $125,000.
B. long-term capital loss of $125,000.
C. long-term capital loss of $100,000 and ordinary loss of $25,000.
D. ordinary loss of $100,000 and long-term capital loss of $25,000.