Claude Bergeron Sold 1,000 Shares of Ditta, Inc

Claude Bergeron sold 1,000 shares of Ditta, Inc., an S corporation, for $12,000. He had owned the stock for three years and had a stock basis of $111,000 in the shares. Claude is single, and he is the original owner of the § 1244 stock shares. Calculate the appropriate tax treatment.

A) No gain or loss.
B) $50,000 LTCL? $49,000 ordinary deduction.
C) $50,000 ordinary deduction? $49,000 LTCL.
D) $99,000 long-term capital loss.