In 1996, Mr

In 1996, Mr. Exton, a single taxpayer, contributed $30,000 in exchange for 100 shares of Morton stock. In 2005, he paid $43,000 to another shareholder to purchase 100 more shares of Morton stock. Morton stock qualified as Section 1244 stock when it was issued. This year, Mr. Exton sold his 200 Morton shares for $250 per share. What is the amount and character of Mr. Exton's recognized loss?

A) $23,000 ordinary loss
B) $23,000 long-term capital loss
C) $3,000 long-term capital gain and $30,000 ordinary loss
D) $5,000 long-term capital loss and $18,000 ordinary loss