1. Brian purchased two automobiles for personal use. Automobile 1 had an adjusted basis of $20,000, and automobile 2 had an adjusted basis of $10,000. In the current year, Brian sold automobile 1 for $15,000 and automobile 2 for $15,000. What gain or loss should Brian recognize on the sales of the automobiles?

   		Automobile 1, loss of $0; automobile 2, gain of $5,000.
   		Automobile 1, loss of $5,000; automobile 2, gain of $5,000.
   		Automobile 1, loss of $5,000; automobile 2, gain of $0.
   		Automobile 1, loss of $0; automobile 2, gain of $0.