Logan sold 500 shares of X Corporation to Charles, his brother, for its fair market value. He had paid $46,000 for the stock. Explain the tax consequences to Logan and Charles under the following circumstances:

A. Sold the shares to Charles for $40,000. One year later, Charles sold them for $38,000 to an unrelated party.

B. Logan sold the shares to Charles for $50,000. One year later, Charles sold them for $47,000 to an unrelated party

C. Logan sold the shares to Charles for $40,000. One year later, Charles sold them for $48,000 to an unrelated party.