Norman received shares of stock as a gift from his uncle in 2012.At the time of the gift,the stock had a FMV of $5,000.The uncle purchased the stock in 2010 and had a basis of $6,000.If Norman sells the stock for $7,000 in 2014,he will report a:
A) $1,000 ordinary gain.
B) $1,000 capital gain.
C) $2,000 ordinary gain.
D) $2,000 capital gain.
Correct Answer:
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