Olivia sells some stock she purchased several years ago for $9,000 to her brother Jack for $12,000.One year later Jack sells the stock for $15,000.The tax consequences to Olivia and Jack are:
$\begin{array}{l}
\begin{array}{ll}
\text { Olivia }&\text { Jack } \
\text { a. } \$ 3,000 \text { gain } & \$ 3,000 \text { gain } \
\text { b. No gain or loss } & \$ 6,000 \text { gain } \
\text { c. No gain or loss } & \$ 3,000 \text { gain } \
\text { d. } \$ 3,000 \text { gain } & \$ 6,000 \text { gain }\
\text { e. No gain or loss }&\text { No gain or loss }
\end{array}\
\end{array}$

Question

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The Answer of Olivia sells some stock she purchased several years ago for $9,000 to her brother Jack for $12,000.One year later Jack sells the stock for $15,000.The tax consequences to Olivia and Jack are:
$\begin{array}{l}
\begin{array}{ll}
\text { Olivia }&\text { Jack } \
\text { a. } \$ 3,000 \text { gain } & \$ 3,000 \text { gain } \
\text { b. No gain or loss } & \$ 6,000 \text { gain } \
\text { c. No gain or loss } & \$ 3,000 \text { gain } \
\text { d. } \$ 3,000 \text { gain } & \$ 6,000 \text { gain }\
\text { e. No gain or loss }&\text { No gain or loss }
\end{array}\
\end{array}$

Olivia Sells Some Stock She Purchased Several Years Ago for $9,000