10. Several years ago, Kurt paid $15,000 for 1,000 shares of stock in ABC. During the current year ABC declares a three-for-one stock split. Shortly thereafter, Kurt sells 1,000 shares of ABC stock for $12,000. His recognized gain on the sale of the 1,000 shares is:

A. $7,000 B. $2,000 C. $0 D. $12,000 E. $5,000

10A. Kurt received 50 shares of XQM stock as a gift. The donor's basis in the stock was $4,000, and the market value of the stock at the time of the gift was $3,000. No gift tax was paid. If the stock is sold for $3,600, the taxpayer recognizes $____________ gain/(loss).