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Related Parties (Section 267) (LO 6.3) Pekoe sold stock to his sister Rose for $12,000, its fair market value. Pekoe bought the stock five years

Related Parties (Section 267) (LO 6.3) Pekoe sold stock to his sister Rose for $12,000, its fair market value. Pekoe bought the stock five years ago for $16,000. Also, Pekoe sold Earl (an unrelated party) stock for $6,500 that he bought three years ago for $8,500. What is Pekoe's recognized gain or loss? a. $2,000 loss b. $3,000 loss c. $6,500 loss d. $6,000 loss e. $1,000 gain

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