Terry Gives Brenda 1,000 Shares of Stock He Had Purchased

Multiple Choice

Terry gives Brenda 1,000 shares of stock he had purchased several years ago for $5,000. On the date of the gift, the stock has a fair market value of $4,000. Brenda sells the 1,000 shares for $5,500 one month after the gift, Brenda realizes a

A) $- 0 - gain or loss
B) $500 short-term capital gain
C) $500 long-term capital gain
D) $1,500 short-term capital gain
E) $1,500 long-term capital gain