Art,an Unmarried Individual,transfers Property (Basis of $130,000 and Fair Market

Multiple Choice

Art,an unmarried individual,transfers property (basis of $130,000 and fair market value of $120,000) to Condor Corporation in exchange for § 1244 stock.The transfer qualifies as a nontaxable exchange under § 351 and Art's basis in the Condor stock is $130,000.Five years later,Art sells the Condor stock for $50,000.With respect to the sale,Art has:

A) An ordinary loss of $80,000.
B) An ordinary loss of $70,000 and a capital loss of $10,000.
C) A capital loss of $80,000.
D) A capital loss of $30,000 and an ordinary loss of $50,000.
E) None of the above.