Stacy, Who Is Married and Sole Shareholder of ABC Corporation

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 boots. The stock in ABC Corporation qualified as Sec. 1244 stock. The sale results in a(n)

A) long- term capital loss of $125,000.
B) long- term capital loss of $100,000 and ordinary loss of $25,000.
C) ordinary loss of $125,000.
D) ordinary loss of $100,000 and long- term capital loss of $25,000.