The controller of Oak Corp., a calendar year-end C corporation, asked you to determine how the sale of various assets should be reported. The controller provided you with the information below for the transactions in Year 7. Treat each sale as an independent transaction. Using the information provided, please compute the gain or loss recognized on the sale of the asset and the character of the gain or loss.
1. Oak sold 1,000 shares of Rose Corp. stock held for investment on June 15th, Year 7, for total proceeds of $10,000. Oak originally purchased 500 shares of Rose Corp. stock on October 10, Year 4 for a total cost of $2,000. On July 15th, Year 6 there was a 4-for-1 stock split.