On June 4, 2004, Ted bought stock at a cost of $7,000. On January 31, 2020, he gave the stock to his son, George. At the time of the gift, the fair market value of the stock was $6,000. On May 1, 2020, George sold the stock.

what is the nature of the gain of loss if ted sells the stock for ? and how much is the gain or loss?

a. 5000

b.10,500

c. 6,500