Terry Owns Lakeside, Inc $\begin{array}{lll}\text { Terry's Recognized Loss }&\text { Jake's Recognized Gain(Loss) }&\text { Pamela'sBasis }\\\end{array}$

Terry owns Lakeside, Inc. stock (adjusted basis of $80,000), which she sells to her brother, Jake, for $64,000 (its fair market value). Eighteen months later, Jake sells the stock to Pamela, a friend, for $78,000 (its fair market value). What is Terry's recognized loss, Jake's recognized gain or loss, and Pamela's adjusted basis for the stock? $\begin{array}{lll}\text { Terry's Recognized Loss }&\text { Jake's Recognized Gain(Loss) }&\text { Pamela'sBasis }\\\end{array}$
A) $\begin{array}{lll}&&\$-0- &&&&&&&&& \$-0- &&&&&&&&& \$ 78,000 \\\end{array}$
B) $\begin{array}{lll}&&\$-0- &&&&&&&&& \$ 14,000 && &&&&&&&\$ 64,000 \\\end{array}$
C) $\begin{array}{lll}&&\$-0- &&&&&&&&& \$ 14,000 &&&&&&&&& \$ 78,000 \\\end{array}$
D) $\begin{array}{lll} && \$ 16,000&&&&&&& & \$ 14,000 &&&&&&&&&& \$ 78,000 \end{array}$
E) $\text { None of these. }$