Olivia Sells Some Stock She Purchased Several Years Ago for $9,000

Short Answer

Olivia sells some stock she purchased several years ago for $9,000 to her brother Jack for $12,000. One year later Jack sells the stock for $15,000. The tax consequences to Olivia and Jack are:
?
$\begin{array}{cc}&\text { Olivia }& &&&\text { Jack }\\\end{array}$
A) $\begin{array}{ll}\$ 3,000 \text { gain } & &\$ 3,000 \text { gain } \\\end{array}$
B) $\begin{array}{ll}\text {No gain or loss } & \$ 6,000 \text { gain } \\\end{array}$
C) $\begin{array}{ll}\text { No gain or loss } & \$ 3,000 \text { gain } \\\end{array}$
D) $\begin{array}{ll}\$ 3,000 \text { gain } && \$ 6,000 \text { gain } \\\end{array}$
E) $\begin{array}{ll}\text { No gain or loss } & \text { No gain or loss }\end{array}$