Norman Received Shares of Stock as a Gift from His

Multiple Choice

Norman received shares of stock as a gift from his uncle in 2014.At the time of the gift,the stock had a FMV of $5,000.The uncle purchased the stock in 2012 and had a basis of $6,000.If Norman sells the stock for $7,000 in 2016,he will report a:

A) $2,000 capital gain.
B) $2,000 ordinary gain.
C) $1,000 capital gain.
D) $1,000 ordinary gain.