Jerry and Julie Are Brother and Sister

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 five years ago. Also, Jerry sold Carol (an unrelated party) stock for $2,000 that cost $10,000 three 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