Sergio owns 200 shares of Palm Corporation common stock, purchased during the prior year: 100 shares on July 5. for $9,000; and 100 shares on October 15, for $12,000. When Sergio sells 50 shares for $8,000 on July 18 of the current year, he does not identify the particular shares sold. Determine the amount and character of the gain. Using the FIFO method Sergio will recognize