Sarah sold 1,000 shares of stock to her brother, David, for $20,000 more than a year ago. Sarah had purchased the stock for $21,000 several years earlier. What is the amount and character of David's recognized gain or loss in the current year if he sells the stock for either $15,500 or $25,500?

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The Answer of Sarah sold 1,000 shares of stock to her brother, David, for $20,000 more than a year ago. Sarah had purchased the stock for $21,000 several years earlier. What is the amount and character of David's recognized gain or loss in the current year if he sells the stock for either $15,500 or $25,500?

Sarah Sold 1,000 Shares of Stock to Her Brother, David