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QUESTION

Ralph gave his daughter, Barbara, stock (basis of $8,000; fair market value of $6,000). No gift tax was payable. Barbara then sold the stock for...

Ralph gave his daughter, Barbara, stock (basis of $8,000; fair market value of $6,000). No gift tax was payable. Barbara then sold the stock for $10,000. What was Barbara's her recognized gain or loss?

            a.        $0

            b.        $2,000

            c.        $4,000

            d.        $10,000

            e.        None of the above is correct.

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