2) A parent purchased 100 shares of Bigco stock for $100,000 in Year 1. On June 1, Year 4, the parent sold all the stock to their child for its fair market value of $80,000. On October 15, Year 4, the child sold the 100 shares of Bigco for $70,000 to an unrelated party. What was the child's recognized loss on the stock sale?

A.$0

B.$10,000

C.$20,000

D.$30,000

3)On March 1, Year 3, a taxpayer inherited 1,000 shares of Extra Corp., common stock, from a relative. The taxpayer's relative had paid $5,000 for the stock in Year 1. The fair market value of Extra Corp. stock on March 1, Year 3, the date of death, was $8,000 and increased to $11,000 six months later. The estate's executor elected the alternative valuation for estate tax purposes and distributed the stock six months after the date of death. How much income should the taxpayer report on the Year 3 tax return for the inherited Extra Corp. stock?

A.$0

B.$3,000

C.$5,000

D.$6,000