Terry owns Lakeside, Inc. stock (adjusted basis of $80,000), which she sells to her brother, Jake, for $64,000 (its fair market value). Eighteen months later, Jake sells the stock to Pamela, a friend, for $78,000 (its fair market value). What is Terrys recognized loss, Jakes recognized gain or loss, and Pamelas adjusted basis for the stock?

Terry's Recognized Loss Jake's Recognized Gain (Loss) Pamela's Basis

	a.	$ -0- $ -0- $78,000
	b.	$ -0- $14,000 $64,000
	c.	$ -0- $14,000 $78,000
	d.	$16,000 $14,000 $78,000