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Scenario: Dave owns stock in Big Game Corp that cost $22,000. He sells the stock to his son, Gary for $15,000. Two years later Gary

Scenario: Dave owns stock in Big Game Corp that cost $22,000. He sells the stock to his son, Gary for $15,000. Two years later Gary sells the stock for $24,000.

a. What is Dave's realized and recognized gain or loss on the transaction?

b. What is Gary's realized and recognized gain or loss on the transaction?

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