3. Suki and Dave each purchase 100 shares of stock of Burgundy, Inc., a publicly owned corporation, in July for $10,000 each. Suki sells her stock on December 31 for $8,000. Because Burgundy's stock is listed on a national exchange, Dave can ascertain that his shares are worth $8,000 on December 31. Does the Federal income tax law treat the decline in value of the stock differently for Suki and Dave?

A. They are treated the same as both experienced a decline in stock value that is considered a realization event.

B. They are treated differently because the loss in value of Suki's stock is the result of a sale, while the loss in value of Dave's stock is simply a decline in value.

C. They are treated the same because Suki and Dave have a decline in fair market value, which is considered the relevant factor.