pls.. give steps...and explain how to solve it

Mike sells property with an adjusted basis of dollar 35,000 to his blood brother for dollar25,000, the then fair market value of the property. The fair market value of the property six months later was dollar30, 000. Mike's brother subsequently sells the property the following year to an unrelated party for dollar37,000. Which of the following is false? The dollar10, 000 realized loss to Mike is disallowed. Mike's brother has a recognized gain of dollar2,000. Mike's brother has a realized gain of dollar12,000. Mike's brother has a realized gain of dollar7,000. Mike's brother received dollar37,000 in sales proceeds