Question - Laurel transfers property with an adjusted basis of $10,000 and an FMV of $2,000 to T Corp. for its small business stock. Three years later, the stock becomes worthless. How will the loss be reported on Laurel's individual tax return?
A. $10,000 capital loss
B. $10,000 ordinary loss
C. $2,000 ordinary loss and $8,000 capital loss
D. $8,000 ordinary loss and $2,000 capital loss