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. because the property is loss property, condor takes a basis in the property of $120,000. 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.