On July 25,2016,Karen Gives Stock with a FMV of $7,500

Multiple Choice

On July 25,2016,Karen gives stock with a FMV of $7,500 and a basis of $8,000 to her nephew Bill.Karen had purchased the stock on March 18,2016.Bill sold the stock on April 18,2017 for $6,000.As a result of the sale,what must Bill report on his 2016 tax return?

A) ($1,500) STCL
B) ($1,500) LTCL
C) ($2,000) STCL
D) ($2,000) LTCL