Hosain and Gantsooj purchased 20% of the initial offering of Bryan Corporation common stock for $125,000. Bryan Corporation is a qualifying small business corporation and the stock qualifies as Sec. 1244 stock. Eleven months later, Bryan Corporation files for bankruptcy and the shareholders are notified that the stock is worthless. Hosain and Gantsooj, who are married and file a joint return, have a: a. $125,000 ordinary loss.
b. $125,000 capital loss.
c. $100.000 ordinary loss: $25.000 capital loss.
d. $100.000 ordinary loss: $25,000 ordinary loss carryforward.