Charlie Incorporates His Business by Transferring Property with a Basis

Charlie incorporates his business by transferring property with a basis of $250,000 for 200 shares of stock.The stock qualifies as § 1244 stock.Charlie later gives 100 shares to his daughter, Raquel when the stock was worth $400,000.Eventually the business fails, and the corporation becomes bankrupt in the current year.Charlie files a joint return in the current year.Raquel files as a single person.With respect to the worthless stock:

A) Charlie has ordinary loss of $100,000.
B) Raquel has an ordinary loss of $125,000.
C) Charlie has a capital loss of $125,000.
D) Charlie has ordinary loss of $125,000.
E) None of the above.