Samuel sold ABC stock valued at $22,650 to his son, Jim, for $12,650. Samuel's basis in the stock is $17,650. Which if the following is correct?

Samuel sold ABC stock valued at $22,650 to his son, Jim, for $12,650. Samuel's basis in the stock is $17,650. Which if the following is correct?

a. Samuel reports a gift of $22,650 on Form 09 and a capital loss of $10,000 ($12,650 - $22,650) on Form 1040. Jim's basis in the stock is $12,650.

b. No reporting is required because the transfer was between immediate family members.

c. Samuel is not required to report the $10,000 gift ($22,650 - $12,650) and is not allowed to deduct the $5,000 loss ($12,650 - $17,650 basis). If Jim sells the stock, his basis for gain id $17,650, and his basis for loss is $12,650.

d. Samuel reports a gift of $22,650. Jim's basis in the stock is $12,650.