Lynn transfers property (basis of $225,000 and fair market value of $300,000) to condor corporation in exchange for § 1244 stock. the transfer qualifies as a nontaxable exchange under § 351. in the current year, lynn sells the condor stock for $100,000. assume lynn files a joint return with her husband, ricky. with respect to the sale, lynn has:

a. a capital loss of $125,000.
b. an ordinary loss of $100,000 and a capital loss of $100,000.
c. an ordinary loss of $125,000.
d. an ordinary loss of $100,000 and a capital loss of $25,000.
e. none of these choices are correct.

Lillypad toys is a manufacturer of educational toys for children. six months ago, the company's research and development division came up with an idea for a unique touchscreen device that can be used to introduce children to a number of foreign languages. three months ago, the company produced a working prototype, and last month the company successfully launched its new device on the commercial market. what should lillypad's managers prepare for next? a. increased competition from imitators b. a prolonged period of uncontested success c. a sharp decline in demand for the product d. a difficult struggle to move from invention to innovation