In February, Lloyd sold stock with a cost basis of $26,000 to his sister, Jasmine, for $24,000, the fair market value of the stock on the date of sale. Five months later, Jasmine sold the same stock through her broker for $30,000. What is the tax effect of these transactions?

a. Disallowed loss to Jasmine of $2,000; gain to Lloyd of $1,000. b. Disallowed loss to Lloyd of $2,000; gain to Jasmine of $4,000. c. Deductible loss to Lloyd of $2,000; gain to Jasmine of $3,000. d. Disallowed loss to Lloyd of $2,000; gain to Jasmine of $1,000.