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Seven years ago Hugo purchased some stock for $12,000. This year, when the fair market value of the stock was $9,000, he gifted the stock

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Seven years ago Hugo purchased some stock for $12,000. This year, when the fair market value of the stock was $9,000, he gifted the stock to Sophie. Subsequently, Sophie sold the stock for $8,500. What is the amount of Sophie's gain or loss on the sale? Select one: a. $3,500 loss b. No gain and no loss c. $500 loss d. None of the above

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