Sly purchased stock in 20x1 for $50,000. In 20x4 he sold it to his son (Jared) for $30,000. In 20x5 Jared sold it to his friend for $40,000. What loss does Sly recognize in 20x4 and what gain does Jared recognize in 20x5?

a. Sly recognizes $20,000 loss and Jared recognizes $10,000 gain.

b. Sly recognizes $20,000 loss and Jared recognizes $-0- gain.

c. Sly recognizes $-0- loss and Jared recognizes $10,000 gain.

d. Sly recognizes $-0- loss and Jared recognizes $-0- gain.