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Craig bought stock for $10,000 and gifted it to Homer when the stock was valued at $5,000. Homer sold the stock 2 years later for

Craig bought stock for $10,000 and gifted it to Homer when the stock was valued at $5,000. Homer sold the stock 2 years later for $8,000. Homers taxable gain on the sale of stock is?

  1. ($2,000) (capital loss)
  2. $0
  3. $3,000
  4. $8,000

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