On January 30, Gale receives a nontaxable distribution of stock rights from Full Measure Corporation. Each right entitles the holder to purchase one share of stock for $40. One right is issued for every share of stock owned. Gale owns 130 shares of stock purchased two years ago for $4,400. At the date of distribution, the rights are worth $1,560 (130 rights at $12 per right) and Gale's stock in Full Measure is worth $7,800 (or $60 per share). On December 1, Gale sells all 130 stock rights for $8 per right. How much gain does Gale recognize on the sale?

Question options:

A. $1,040

B. $544

C. $50

D. $0

E. None of these.