Jerry and Julie are brother and sister.Jerry sold stock to Julie for $5,000, its fair market value.The stock cost Jerry $10,000 5 years ago.Also, Jerry sold Carol (an unrelated party) stock for $2,000 that cost $10,000 3 years ago.What is Jerry's recognized loss before the $3,000 capital loss limitation?
A) $0
B) $8,000
C) $5,000
D) $13,000
E) $14,000
Correct Answer:
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