In January Last Year, D, Single, Established a Corporation and Acquired

In January last year, D, single, established a corporation and acquired § 1244 stock.This year the stock, which had a basis of $120,000, became worthless.D had no other property transactions during the year.D's adjusted gross income will decrease because of these transactions by

A) $50,000
B) $120,000
C) $3,000
D) $53,000
E) $103,000