Mike inherited some stock from his great aunt. His aunt had purchased the stock many years ago for $48,000. At the date of his aunt's death, the stock was valued at $225,000. Mike wanted the money to buy a ise, so he sold it for $225,000, and paid sales commissions of $2,250. What is Mike's basis in the stock, and does he have a gain or loss?

1. Basis $48,000; gain $177,000
2. Basis $48,000; gain $174,750

c. Basis $225,000; gain $0

d. Basis $225,000; loss $2,250