On September 3, 2011, Able, a Single Individual, Purchased §

On September 3, 2011, Able, a single individual, purchased § 1244 stock in Red Corporation from his friend Al for $60,000.On December 31, 2011, the stock was worth $85,000.On August 15, 2012, Able was notified that the stock was worthless.How should Able report this item on his 2012 tax return?

A) $85,000 capital loss.
B) $85,000 ordinary loss.
C) $50,000 ordinary loss and $35,000 capital loss.
D) $60,000 ordinary loss.
E) None of the above.