QUESTION 26 In 2011, Norma purchased 100 shares of XYZ stock as an investment. The stock cost $10,000. In 2014, when the fair market value was $12,000, Norma gave the stock to her daughter, Lydia. No gift tax was paid. If Lydia sells the stock for $13,000, Lydia will recognize: no gain or loss. a $1,000 gain. a $2,000 gain. a $3,000 gain. none of the above.