Olivia sells some stock she purchased several years ago for $9,000 to her brother Jack for $12,000.One year later Jack sells the stock for $15,000.The tax consequences to Olivia and Jack are:
$\begin{array}{ll}
{\text { Olivia }} & \text { Jack } \
a.\$ 3,000 \text { gain } & \$ 3,000 \text { gain } \
b.\text { No gain or loss } & \$ 6,000 \text { gain } \
c.\text { No gain or loss } & \$ 3,000 \text { gain } \
d.\$ 3,000 \text { gain } & \$ 6,000 \text { gain } \
e.\text { No gain or loss } & \text { No gain or loss }
\end{array}$

Question

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The Answer of Olivia sells some stock she purchased several years ago for $9,000 to her brother Jack for $12,000.One year later Jack sells the stock for $15,000.The tax consequences to Olivia and Jack are:
$\begin{array}{ll}
{\text { Olivia }} & \text { Jack } \
a.\$ 3,000 \text { gain } & \$ 3,000 \text { gain } \
b.\text { No gain or loss } & \$ 6,000 \text { gain } \
c.\text { No gain or loss } & \$ 3,000 \text { gain } \
d.\$ 3,000 \text { gain } & \$ 6,000 \text { gain } \
e.\text { No gain or loss } & \text { No gain or loss }
\end{array}$

Olivia Sells Some Stock She Purchased Several Years Ago for $9,000