Norman received shares of stock as a gift from his uncle in 2013. At the time of the gift, the stock had a FMV of $5,000. The uncle purchased the stock in 2011 and had a basis of $6,000. If Norman sells the stock for $7,000 in 2015, 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:
Verified
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