Anna has two friends, Bob and Anthony. She owns 2,000 shares of stock that she bought for $20,000 several years ago. When the stock is worth $18,000 in total, she gives half of the shares to Bob and the other half to Anthony. Later, Bob sells his shares for $7,000, whereas Anthony holds the stock longer and sells his half for $9,400. Which of the following statements is correct about the income tax effects to be reported?

Question 5 options:

Bob reports a $2,000 loss and Anthony reports neither a gain nor a loss.

Bob reports a $3,000 loss and Anthony reports a $400 gain.

Bob reports a $2,000 loss and Anthony reports a $400 gain.

Bob reports a $3,000 loss and Anthony reports a $600 loss.