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Bob purchases 25,000 shares of common stock of Super Duper for $100,000. Exactly one year later when the stock is selling for $5 per share,

Bob purchases 25,000 shares of common stock of Super Duper for $100,000. Exactly one year later when the stock is selling for $5 per share, Bob sells 5,000 shares for $25,000 and holds on to the remaining 20,000 shares. Which of the following statements is correct?

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Bob has a realized capital gain of $4,000 and an unrealized capital gain of $1,000.

Bob has a realized capital gain of $5,000 and an unrealized capital gain of $20,000.

Bob has a $25,000 realized capital gain.

Bob has a $5,000 unrealized capital gain.

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