Tracy Gave Stock with an Adjusted Basis of $18,000 and an FMV

Multiple Choice

Tracy gave stock with an adjusted basis of $18,000 and an FMV of $15,000 to her nephew Phil. No gift tax was paid. Phil sold the stock for $16,000. The gain or loss Phil will recognize on the sale is

A) $1,000 gain.
B) $0.
C) $1,500 loss.
D) none of the above