Erin purchased stock in JKL Corporation several years ago for $8,750. In the current year, she sold the same stock for $12,800. She paid a $200 sales commission to her stockbroker.

1. What is Erin’s amount realized? $ ______________ 2. What is Erin’s adjusted basis? $ ______________ 3. What is Erin’s realized gain or loss? $ ______________ 4. What is Erin’s recognized gain or loss? $ ______________ 5. How is any gain or loss treated for tax purposes?