In 2006,Gaylord Purchased 100 Shares of Stock of Chisel Corporation

In 2006,Gaylord purchased 100 shares of stock of Chisel Corporation for $200 per share.In 2013,Gaylord sells all of the shares for $19,000.What are the effects of these events?
I.The capital recovery concept prevents the recognition of any income.
II.Gaylord reports $1,000 of ordinary income for tax year 2013.

A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements are correct.
D) Neither statement is correct.