Nick received a gift of stock from his father. Nick's father had purchased the stock 2 years earlier and his father's basis in the stock was $30,000. On the date of the gift, the stock had a fair market value of $35,000.

a.	If Nick sells the stock for $39,000, calculate the amount of Nick's gain or loss on the transaction.
b.	If Nick sells the stock for $22,000, calculate the amount of Nick's gain or loss on the transaction.