medium · Certified Financial Planner Risk Management

Mrs. Wojcik receives a gift of stock from her brother. On the date of the gift, the stock's Fair Market Value (FMV) is $8,000 and the brother's basis is $10,000.

If Mrs. Wojcik sells the stock six months later for $9,000, what is her recognized gain or loss?

  1. A $1,000 short-term capital loss.
  2. A $1,000 short-term capital gain.
  3. No gain or loss is recognized.
  4. A $2,000 short-term capital loss.

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