Marcus owned 200 shares (100 percent) of Sterling Company's common stock. His basis in the shares was \(\$ 12,000\). In 2015 , Sterling issued a preferred stock dividend to Marcus. The 50 shares he received had a fair market value of \(\$ 10,000\). Sterling's \(E \& P\) in 2015 was \(\$ 8,000\). The fair market value of the common stock was \(\$ 20,000\) immediately after the dividend. In 2018, when Sterling's \(E \& P\) was \(\$ 15,000\), Marcus sold the 50 shares of preferred stock to an unrelated party for \(\$ 9,000\). What are the tax consequences of these transactions to Marcus?