Mara Teresa sold stock to his brother Danilo for $5,000, its fair market value. In the transaction she had a disallowed related party loss of $4,000. Two years later Danilo sells the stock to Perico (who is unrelated to him) for $10,000. What is Danilos recognized gain (loss) in the sale to Perico?

Select one:

a. $6,000

b. ($4,000)

c. $1,000

d. $0

e. $5,000