Determine the realized and recognized gain or loss and the character of the gain or loss.

1. Emilio and Charita own stock in Software Corporation.

They purchased 1,000 shares for $20 per share in July 2006. They paid $400 in brokerage commissions.

On July 21, 2013, Software Corporation distributed a 2-for-1 stock split.

The fair market value at the time of the split was $100 per share.

2. On July 21, 2008, Emelio's father gave him 100 shares of stock in Flex Corporation.

His father paid $35 per share in June 1999. The fair market value at the date of the gift was $45 per share.

3. Emelio raises the additional cash he needs to complete the building repairs by selling 100 shares of Software Corporation stock for $24 per share. (He pays brokerage commissions of $140.)

He also sells 100 shares of Flex Corporation stock for $40 per share. (Brokerage commissions are $200.)