(TCO B) Joey John contributed publicly traded stock to a public charitable organization. The basis in the stock was $1,000, but its fair-market value was $1,500 at the time of the donation. Indicate the correct income tax treatment as a result of the donation. The stock was held long term. (Points : 5)

Contribution of $1,000 (no gain recognized)

Contribution of $1,500 (no gain recognized)

Contribution of $1,500 (capital gain recognized $300)

Contribution of $1,000 (capital gain recognized $500)