A cash-method taxpayer, Louie rents a single-family home to a new tenant for the period from July 1, 20X1 through June 30, 20X2. Prior to the tenant's move-in, Louie requires the first month's rent of $2,000 and a cleaning deposit of $500. Louie must report as income from these three items in 20X1 as:

Group of answer choices

$4,500

$500

$2,000

$0

Fred purchases 100 shares of Apple stock for $5,000. Two years later, Fred gifts the stock to his niece Maria. Maria sells 50 shares of the Apple Stock for $6,000. What is her gain?

Group of answer choices

$3,500

$6,000

$3,000

$1,000