Matthew has been an active postage-stamp collector for a number of years. A few years ago, he bought a scarce U.S. postage stamp for $4900. He has now decided to sell the stamp. If he sells it at an auction and receives $5300 but pays a 15% sales commission on the amount received, what will be Matthews capital gain/loss?

Loss of $5.

Gain of $395.

Gain of $400.

Loss of $395.